SIFMA today released the following statement from Kenneth E. Bentsen, Jr., President and CEO of SIFMA, regarding prudential regulators’ proposals to revise the U.S. bank capital framework, including changes to the G-SIB capital surcharge, and implement the final phase of Basel III:
“We appreciate policymakers’ efforts to revisit the earlier Basel III proposals and to take a more data-driven approach to recalibrating the U.S. bank capital framework, including the G-SIB capital surcharge. Strong capital standards are essential to a resilient financial system, and U.S. banks today are among the best capitalized in the world.
“As policymakers consider these revisions, it is important that the final framework is appropriately tailored, risk sensitive, and harmonized with other global capital markets and avoids unnecessary constraints on banks’ ability to support economic growth, capital markets activity, and client financing. In particular, the treatment of market risk under the Fundamental Review of the Trading Book should appropriately reflect the lower-risk of many capital markets activities and avoid disproportionate capital charges that could reduce market liquidity and increase costs for businesses and investors across the U.S. economy.
“SIFMA looks forward to reviewing the proposals in detail and engaging constructively with regulators during the comment process.”
