US bankers welcome Basel IA proposals

WASHINGTON, October 7 (Global Risk Regulator) – US banking industry representatives generally welcomed the proposed US revisions of the current Basel I bank safety rules issued yesterday. The revisions aim to offset any competitive disadvantages arising for the thousands of US regional and community banks that won’t be adopting the international Basel II capital adequacy rules.

The changes, dubbed Basel IA and issued in the form of an advanced notice of proposed rulemaking or ANPR, "should more closely align risk-based capital requirements with the risk inherent in various exposures," the four federal banking supervisory agencies said in a joint statement.

The American Bankers Association (ABA), which represents a spectrum of large and small banks, said it’s encouraged by the new proposals for the 8,900-plus US banks that won’t be affected by Basel II. "As we have been urging for months, risk-based capital standards for banks are in need of updating," the ABA said.

America’s Community Bankers (ACB) managing director of government relations Robert Davis said on initial review the ANPR addresses many of the concerns that ACB, a leading trade association for small US banks, has been expressing on behalf of members for several years.

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