“Now is the time to modernize our capital framework to unleash economic growth for American businesses and consumers across the country.”
A coalition of leading business trade organizations urged prudential regulators to examine and modernize large bank capital requirements to ensure they support consumers, businesses, and the U.S. economy. The organizations, which represent a wide range of stakeholders, including small businesses, manufacturers, and farmers, highlighted the negative impact of inappropriately calibrated requirements on economic growth and American competitiveness, and applauded the ongoing efforts to improve the capital framework.
A review of 13 economic studies found that increased capital requirements can cost the economy $100 billion to $150 billion per year and result in $2.3 trillion in lost economic productivity over 30 years.
“We greatly appreciate the work being undertaken by bank regulators to modernize capital rules to unleash economic growth and support various industries and sectors across the country. Specifically, common sense adjustments to Basel III Endgame, the GSIB Surcharge, stress testing, and leverage requirements will improve access to credit and reduce the costs of goods and services for American businesses and consumers, ensuring the U.S. economy can continue to thrive and grow,” the trade organizations said.
The statement for the record was signed by the Financial Services Forum, American Bankers Association, American Cotton Shippers Association, American Farm Bureau Federation, Bank Policy Institute, Business Roundtable, Commodity Markets Council, Consumer Bankers Association, Futures Industry Association, International Swaps and Derivatives Association, Mortgage Bankers Association, National Association of Manufacturers, National Association of REALTORS®, The Real Estate Roundtable, Securities Industry and Financial Markets Association, and U.S. Chamber of Commerce.
Read the full statement for the record here.
