ACB: Press Releases

Contact:	Robert Schmermund (202) 857-3104 Jim Eberle (202) 857-3145	Jim Eberle (202) 857-3145 (work) (703) 893-2593 (home) [email protected]	For Immediate Release October 6, 2005 #05-73
E-mail: [email protected]

ACB STATEMENT ON BASEL IA PROPOSAL

Press Release Tools
	E-mail This Press Release
	Printer-Friendly Format

Statement by Robert R. Davis, executive vice president and managing director of government relations, America’s Community Bankers, on the Basel Ia proposal issued for comment today by the federal banking regulators:

From our initial review, the Basel Ia changes under consideration by the regulators address many of the concerns ACB has been expressing on behalf of members for several years. The proposal is a good first step in addressing the competitive disadvantages that community banks would otherwise face once the Basel II capital regime is implemented.

We are particularly pleased that the proposal would more closely align capital requirements with the risk levels for many of the key products of community banks, including residential mortgage loans and small business loans.

Overall, the changes discussed in the advance notice of proposed rulemaking appear to be designed to more closely relate capital requirements to the risk of individual assets. ACB also supports permitting banks to remain subject to Basel I as an option to limit new regulatory costs. But ACB will suggest optional risk-modeling approaches that may be suitable for more sophisticated community banks.

America’s Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit www.AmericasCommunityBankers.com.

-30-