CONTACT: Elizabeth Maness

(202) 821-7542

emaness@fsforum.com

Washington, D.C. – The American Bankers Association, Bank Policy Institute, Financial Services Forum, Institute of International Bankers, and Securities Industry and Financial Markets Association today submitted a letter to Federal Reserve Chair Jerome Powell expressing concern about a forthcoming proposal to implement the Basel agreement of 2017, and issues raised during a recent speech by Vice Chair of Supervision Barr announcing the results of his “holistic review” of U.S. capital rules.

“Vice Chair Barr’s review apparently considered only the benefits of higher capital requirements and none of the costs, which will be borne by end users, small businesses and consumers across the country. Those costs are universally recognized in both academic research and, more importantly, real-world experience.”

“The largest U.S. banks are well capitalized and have been a source of strength – a fact confirmed repeatedly by the banking agencies and the Administration, analysts and investors, your recent testimony and the recently announced results of the Federal Reserve’s own stress test – as well as the results of past stress tests.”

Additionally, the associations urged Chair Powell to allow a 120-day comment period on the proposed rule. This rule will have a direct impact on families and small businesses which merits careful consideration from regulators and industry.

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The Financial Services Forum is an economic policy and advocacy organization whose members are the chief executive officers of 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, deep and liquid capital markets, a competitive global marketplace, and a sound financial system.

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About the American Bankers Association:

The American Bankers Association is the voice of the nation’s $23.6 trillion banking industry, which is composed of small, regional and large banks that together employ more than 2 million people, safeguard $19.2 trillion in deposits and extend $12.2 trillion in loans.

About the 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.

About the Financial Services Forum:

The Financial Services Forum is an economic policy and advocacy organization whose members are the chief executive officers of 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, deep and liquid capital markets, financial inclusion, a competitive global marketplace, and a sound financial system.

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 one million employees, we advocate on 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).