Bill Introduced to Require Study of Basel III Impact on Community Banks

Senator Joe Manchin (D-W.Va.) and Sen. Dean Heller (R-Nev.) have introduced legislation supported by the American Bankers Association that requires a comprehensive study of new capital proposals’ impact on community banks and other institutions before any final rules can be issued.  The Basel Committee on Banking Supervision’s third banking supervision accords (Basel III) have come under fire for being too harsh for smaller institutions. Basel III’s capital regulations and related proposals have also created potential difficulties for large foreign banking organizations.  The Manchin and Heller legislation would require “an empirical impact study on proposed rules relating to the International Basel III agreement on general risk-based capital requirements, as they apply to community banks.”

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by R. Scott Adams

R. Scott Adams

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