Business Trades Support Bank Capital Rule Reform to Boost Economic Growth
“Now is the time to modernize our capital framework to unleash economic growth for
American businesses and consumers across the country.”
A coalition of leading business trade organizations urged prudential regulators to examine and modernize large bank capital requirements to ensure they support consumers, businesses, and the U.S. economy. The organizations, which represent a wide range of stakeholders, including small businesses, manufacturers, and farmers, highlighted the negative impact of inappropriately calibrated requirements on economic growth and American competitiveness, and applauded the ongoing efforts to improve the capital framework.
A review of 13 economic studies found that increased capital requirements can cost the economy $100 billion to $150 billion per year and result in $2.3 trillion in lost economic productivity over 30 years.
“We greatly appreciate the work being undertaken by bank regulators to modernize capital rules to unleash economic growth and support various industries and sectors across the country. Specifically, common sense adjustments to Basel III Endgame, the GSIB Surcharge, stress testing, and leverage requirements will improve access to credit and reduce the costs of goods and services for American businesses and consumers, ensuring the U.S. economy can continue to thrive and grow,” the trade organizations said.
The statement for the record was signed by the Financial Services Forum, American Bankers Association, American Cotton Shippers Association, American Farm Bureau Federation, Bank Policy Institute, Business Roundtable, Commodity Markets Council, Consumer Bankers Association, Futures Industry Association, International Swaps and Derivatives Association, Mortgage Bankers Association, National Association of Manufacturers, National Association of REALTORS®, The Real Estate Roundtable, Securities Industry and Financial Markets Association, and U.S. Chamber of Commerce.
Read the full statement for the record here.
Media Contacts
Laura Peavey
Financial Services Forum
lpeavey@fsforum.com
Josh Britton
American Bankers Association
jbritton@aba.com
Shea Ishee
American Cotton Shippers Association
shea@acsa-cotton.org
Mike Tomko
American Farm Bureau Federation
miket@fb.org
Tara Payne
Bank Policy Institute
media@bpi.com
Jennifer Cummings
Business Roundtable
jcummings@brt.org
Jim Newsome
Commodity Markets Council
Jim.Newsome@commoditymkts.org
Weston Loyd
Consumer Bankers Association
wloyd@consumerbankers.com
Mark Hayes
Futures Industry Association
mhayes@fia.org
Christopher Faimali
International Swaps and Derivatives Association
cfaimali@isda.org
Adam DeSanctis
Mortgage Bankers Association
adesanctis@mba.org
Alexa Lopez
National Association of Manufacturers
alopez@nam.org
Tori Syrek
National Association of REALTORS®
tsyrek@nar.realtor
Abigail Grenadier
The Real Estate Roundtable
agrenadier@rer.org
Lindsay Gilbride
Securities Industry and Financial Markets Association
lgilbride@sifma.org
Jeff Guittard
U.S. Chamber of Commerce
jguittard@uschamber.com
About the Financial Services Forum
The Financial Services Forum is an economic policy and advocacy organization whose members are the eight largest and most diversified financial institutions headquartered in the United States. Forum member institutions are a leading source of lending and investment in the United States and serve millions of consumers, businesses, investors, and communities throughout the country. The Forum promotes policies that support savings and investment, financial inclusion, deep and liquid capital markets, a competitive global marketplace, and a sound financial system.
About the American Bankers Association
The American Bankers Association is the voice of the nation’s $25.1 trillion banking industry, which is composed of small, regional and large banks that together employ more than 2 million people, safeguard $19.7 trillion in deposits and extend $13.2 trillion in loans.
About the American Cotton Shippers Association
We are a federation of merchants, shippers, warehousemen, brokers, gins, banks, futures brokers, and logistics experts. And while we manage the majority of the world’s cotton sales and shipments, we move more than just that.
With global information, we move ideas forward. With influence and advocacy, we move people to believe in our future. With infinite dedication, we move anything in the way of our industry’s progress. And we will never stop.
About the American Farm Bureau Federation
The American Farm Bureau Federation is the Voice of Agriculture®. We are farm and ranch families working together to build a sustainable future of safe and abundant food, fiber and renewable fuel for our nation and the world.
About the Bank Policy Institute
The Bank Policy Institute is a nonpartisan public policy, research and advocacy group that represents universal banks, regional banks and the major foreign banks doing business in the United States. The Institute produces academic research and analysis on regulatory and monetary policy topics, analyzes and comments on proposed regulations, and represents the financial services industry with respect to cybersecurity, fraud and other information security issues.
About the Business Roundtable
Business Roundtable is an association of more than 200 chief executive officers (CEOs) of America’s leading companies, representing every sector of the U.S. economy. Business Roundtable CEOs lead U.S.-based companies that support one in four American jobs and almost a quarter of U.S. GDP. Through CEO-led policy committees, Business Roundtable members develop and advocate directly for policies to promote a thriving U.S. economy and expanded opportunity for all Americans.
About the Commodity Markets Council
Founded over 90 years ago, the Commodity Markets Council (CMC), is the leading Washington, DC based trade association that brings together commodity exchanges with their agriculture and energy trading counterparts. Its members include commercial end-users that utilize the futures and swaps markets for agriculture, energy, metal, and soft commodities hedging. Its industry member firms also include regular users and members of futures exchanges, price reporting agencies, and top law firms. CMC advocates for an open, competitive marketplace by combining the expertise, knowledge, and resources of our members to develop and support market-based policy.
About the Consumer Bankers Association
The Consumer Bankers Association represents America’s leading retail banks. We promote policies to create a stronger industry and economy. Established in 1919, CBA’s corporate member institutions account for 1.7 million jobs in America, extend roughly $4 trillion in consumer loans and provide $275 billion in small business loans annually. Follow us on X @consumerbankers.
About the Futures Industry Association
FIA is the leading trade organization for the futures, options and cleared derivatives markets globally. FIA’s membership includes clearing firms, exchanges, clearinghouses, principal traders, asset managers, execution firms, commodity firms, end users and those legal, technology and other firms who serve this community. FIA’s mission is to support open, transparent and competitive markets, protect and enhance the integrity of the financial system and promote high standards of professional conduct.
About the International Swaps and Derivatives Association
Since 1985, ISDA has worked to make the global derivatives markets safer and more efficient. Today, ISDA has over 1,000 member institutions from 78 countries. These members comprise a broad range of derivatives market participants, including corporations, investment managers, government and supranational entities, insurance companies, energy and commodities firms, and international and regional banks. In addition to market participants, members also include key components of the derivatives market infrastructure, such as exchanges, intermediaries, clearing houses and repositories, as well as law firms, accounting firms and other service providers. Information about ISDA and its activities is available on the Association’s website: www.isda.org. Follow us on LinkedIn and YouTube.
About the Mortgage Bankers Association
The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 275,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation’s residential and commercial real estate markets, to expand homeownership, and to extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of more than 2,000 companies includes all elements of real estate finance: independent mortgage banks, mortgage brokers, commercial banks, thrifts, REITs, Wall Street conduits, life insurance companies, credit unions, and others in the mortgage lending field. For additional information, visit MBA’s website: www.mba.org.
About the National Association of Manufacturers
The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.90 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.
About the National Association of REALTORS®
The National Association of Realtors® is involved in all aspects of residential and commercial real estate. The term Realtor® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of Realtors® and subscribes to its strict Code of Ethics.
About The Real Estate Roundtable
The Real Estate Roundtable brings together leaders of the nation’s top publicly-held and privately-owned real estate ownership, development, lending, and management firms with leaders of major national real estate trade organizations to jointly address key national policy issues relating to real estate and its important role in the global economy.
The collective value of assets held by Roundtable members exceeds $4 trillion. The Roundtable’s membership represents more than 3 million people working in real estate; 12 billion square feet of office, retail, and industrial space; over 4 million apartments; and more than 5 million hotel rooms.
The Roundtable’s policy news and more are available at rer.org
About the Securities Industry and Financial Markets Association
SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On behalf of our industry’s nearly 1 million employees, we advocate for legislation, regulation and business policy, affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit http://www.sifma.org.
About the U.S. Chamber of Commerce
The U.S. Chamber of Commerce is the world’s largest business organization representing companies of all sizes across every sector of the economy. Our members range from the small businesses and local chambers of commerce that line the Main Streets of America to leading industry associations and large corporations.
They all share one thing: They count on the U.S. Chamber to be their voice in Washington, across the country, and around the world. For more than 100 years, we have advocated for pro-business policies that help businesses create jobs and grow our economy.