Washington, DC (PRWEB) November 16, 2012
The Independent Community Bankers of America (ICBA) reiterated its call for policymakers to exempt community banks from proposed Basel III regulatory capital standards. In a statement for the record for today’s Senate Banking Committee hearing on the Basel III proposal, ICBA wrote that the standards should not apply to U.S. financial institutions with consolidated assets of $50 billion or less.
“Applying Basel III and the standardized approach to banks beneath this threshold will lead to large-scale consolidation in an industry already overly concentrated,” ICBA said in its statement. “Without a vibrant community banking system, consumers will be left with fewer choices and communities and rural areas across the country will be deprived of the credit needed to sustain and grow local economies.”
If policymakers do not exempt community banks from the Basel III guidelines, ICBA wrote, they should simplify the rule and better align the proposed capital standards to the unique strengths and activities of community banks. Among its modifications, ICBA called for regulators to:
To read ICBA’s statement and for more information, visit http://www.icba.org/advocacy.
The Independent Community Bankers of America®, the nation’s voice for more than 7,000 community banks of all sizes and charter types, is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education and high-quality products and services. For more information, visit http://www.icba.org.