Washington, D.C. — The Bank Policy Institute today released the following statement on Vice Chair Barr’s announcement on Basel Endgame:
BPI and its members look forward to reviewing the announced reproposal of the Basel III Endgame. We remain concerned about the process and the analytical rigor behind the proposal. The focus should not be on reaching a politically expedient top line number but rather a bottom-up evaluation of each aspect of the rule to ensure it is based on data and proper analysis, not just a haircut on faulty math of the original proposal.
The original process lacked a cost-benefit analysis, full transparency and recognition of the interconnectedness of capital requirements: it remains to be seen if this reproposal is the result of a better process. It’s also essential that the agencies take into account the extraordinary overlap with the stress test regime, the GSIB surcharge and other capital requirements—we need a holistic solution.
Ultimately the final rule will have a significant impact on jobs, mortgages, small businesses, capital markets and the growth of the real economy overall. As Vice Chair Barr noted yesterday, it is imperative that we get this right, but the devil is in the details.
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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.
Media Contact
Sean Oblack
Bank Policy Institute
sean.oblack@bpi.com
