ICBA petition opposing Basel III adoption by community banks signed by almost 15,000
Posted: 5 November 2012 | Source: FINCAD
A petition that was recently created by industry representative the Independent Community Bankers of America (ICBA) gathered almost 15,000 signatures from people opposing the imposition of the Basel III capital requirements on these smaller lending institutions, according to a statement.
The document notes that the regulatory regime was originally designed by the Basel Committee in order to apply to major lending institutions, as these large banks could potentially represent a systemic risk. U.S. federal regulators have interpreted the guidelines by mandating that they be applied to community banks.
According to the petition, these community lending institutions already have higher capital reserves than banks of other types. The document also notes that these smaller banks were not implicated as being a factor contributing to the recent financial crisis. The document argues that imposing the capital requirements on these community banks will hamper their ability to lend and invest locally, which could undermine existing economic growth.
ICBA president and chief executive officer Camden Fine said in the statement that the almost 15,000 signatures collected for the petition indicate that community bank staff have spoken, and that applying Basel III to these smaller institutions will reduce the options available to firms and consumers.