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SIFMA today released the following statement from President and CEO Tim Ryan following the release by the Federal Reserve of proposed regulations to implement new capital and liquidity ratios under the Basel III agreement.
“New capital and liquidity standards laid out by Basel III and today proposed by the Federal Reserve will have a significant impact on not only the safety and soundness of the financial system, but also on the availability of credit.
“As we have said before, financial institutions should carry sufficient capital on their balance sheets to adequately safeguard themselves against market disruptions, large scale asset depreciation, and broad financial crises. Requiring excessive regulatory capital, however, will limit the ability of financial institutions to facilitate capital formation to the commercial sector that, in turn, supports new investment critical to economic growth and job creation. At a time of economic uncertainty, it will be imperative for regulators to ensure that implementation and enforcement of these new standards will not hamper the ability of financial institutions to help finance economic growth and job creation. Thus, the way in which Basel III is implemented will be of critical importance.”
