Washington. D.C. – Bank Policy Institute President and CEO Greg Baer issued the following statement on today’s announcements by the Federal Reserve on the Basel capital proposal:
The Federal Reserve’s announcement of the quantitative impact study and comment extension is only the beginning of resolving the significant problems with the agencies’ capital proposal, not the end. The agencies should have engaged in rigorous economic analysis of the proposal’s costs before, not during, the comment period. As a matter both of good policymaking and legal compliance, they must also give the public ample time – 120 days – to analyze and comment on the results of the impact study after they are released. The public will be bearing these costs and should be allowed enough time to evaluate and comment on them. The most appropriate solution is to re-propose the rule after publishing the results, taking a thorough cost-benefit analysis into account.
About Bank Policy Institute.
The Bank Policy Institute (BPI) is a nonpartisan public policy, research and advocacy group, representing the nation’s leading banks and their customers. Our members include universal banks, regional banks and the major foreign banks doing business in the United States. Collectively, they employ almost 2 million Americans, make nearly half of the nation’s small business loans, and are an engine for financial innovation and economic growth.