More expensive and fewer loans for families and businesses
Slower U.S. economic growth
Disruptions to key financial markets
Increasing financial risk by pushing activity outside of the regulated sector
Reduced U.S. economic competitiveness
“[Regulators] should undertake a cost-benefit analysis of the proposed revisions. Otherwise, some groups could be disproportionately adversely affected, and investment and therefore economic growth could suffer.”
Former Fed Governor Randall S. Kroszner, White Paper on Basel III Endgame Proposal, February 2024
“The U.S. financial system, with $23 trillion in assets, is a large, complex system set up to serve the needs of individuals, corporations, and governments of all sizes.”
SIFMA Research Quarterly - Financial & Research Data, April 2024
Financial Services Forum and SIFMA Basel III Endgame Comment Letters
The Financial Services Forum and SIFMA have submitted comment letters on the proposed Basel III Endgame. If implemented, this proposal would lead to a substantial and unwarranted increase in capital requirements for the largest U.S. banks, which will negatively impact the cost and availability of lending, lead to market disruptions, and have broad impacts throughout our economy.
The Latest News
In the following op-ed by Fortune, SIFMA’s President and CEO Kenneth E. Bentsen, Jr. comments on the Proposed Basel III Endgame new trading capital rules and the effects it would have on the U.S. capital markets and the broader economy.
Federal Reserve Chair Jerome Powell told House lawmakers Wednesday he expects “broad and material changes” to a contentious capital requirements proposal the central bank issued in July.
Federal Reserve Chair says that ‘broad material changes’ are on the way but declines to provide details.
The nation’s largest banks are strong and resilient, with significant capital that helps ensure they can support the economy in times of stress.
In the past two decades, the nation’s largest banks have greatly increased both the quantity and quality of capital – a cushion that helps banks absorb losses and continue to serve clients, customers, and communities. They have nearly tripled their common equity tier 1 capital, the highest quality of regulatory capital. They have also taken a number of other measures to build resiliency.
A Solution Looking
for a Problem
In the past two decades, the nation’s largest banks have greatly increased both the quantity and quality of capital – a cushion that helps banks absorb losses and continue to serve clients, customers, and communities. They have nearly tripled their common equity tier 1 capital, the highest quality of regulatory capital. They have also taken a number of other measures to build resiliency.
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