Banking, finance, and taxes
Duke: Different Regulations for Community Banks, Maybe
Published:
Federal Reserve Governor Elizabeth Duke is speaking at the Community Bankers Symposium in Chicago, Illinois today. She brought up new capital requirements under Basel III being delayed. The agencies announced this morning that they do not expect that any of the proposed rules would become effective on January 1, 2013. Further, the agencies offered the assurance that institutions will have time for transition once the rules are effective.
What is interesting is that the new effort telegraphed by Duke here looks to be going away from a “one size fits all” when it comes to community banks and mortgage lending versus when the giant banks are involved in mortgage lending. She did go on to say that most community banks already meet capital standards, but the issue overhanging is that complexity of regulations can be much more burdensome on community banks compared to the giant banks.
This is a speech that may get overlooked by the bulk of the financial community because there do not appear to be any major shifts that were not known before the notes were released. It should also be known that community banks already do have at least some different requirements as they are not deemed systemic risks.
Today’s move seems as though it more of an olive branch on regulating community banks in a different manner than how the so-called too big to fail banks will be regulated. The full speech is here.
JON C. OGG
Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply
clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.