Advocacy State Bank Regulators Oppose Basel III Proposal ICBA announced its strong support for the Conference of State Bank Supervisors’ announcement opposing the proposed Basel III capital standards. The association of state banking regulators said the proposed regulations are too complex, will curtail credit availability and will lead to further industry consolidation.
“ICBA strongly agrees with the CSBS that proposed Basel III capital standards are too complex and will drive many traditional community banks out of the mortgage market,” ICBA President and CEO Camden R. Fine said. “This will result in even greater concentration of the banking industry in Wall Street megabanks and leave Main Street customers in the lurch.”
Basel III was conceived as an international standard that would apply only to the largest, internationally active banks because of their contributions to the Wall Street financial crisis. However, the proposed rule issued by federal regulators would impose the new regulations on banks of all sizes.
ICBA strongly opposes the proposed rules and is calling on community bankers and their allies to make their opposition known via comment letters and by signing an ICBA petition. Learn More and Take Action.
Advocacy Basel III Comment Letters, Petition Signatures Urgent In related news, ICBA continues calling on community bankers to submit comment letters on the Basel III guidelines and to encourage everyone they know to sign ICBA’s Basel III petition. With the Oct. 22 comment deadline approaching, comments and signatures are crucial to exempt community banks from the proposed regulations.
A calculator released by federal regulators allows every community bank to estimate the impact of the Basel III proposed rules. ICBA is encouraging community banks to use the calculator and write a comment letter describing how the Basel III proposal will affect their risk-based capital ratios. Guidelines for drafting a comment letter are available on the ICBA website.
Additionally, ICBA continues to call on community bankers and their allies to sign a petition calling on regulators to exempt community banks from the Basel III proposals. The petition from community bank executives, presidents, directors, employees, business partners and customers advocates allowing community banks to continue operating under Basel I capital regulations.
Economy Private-Sector Employment Up 162K in September Private-sector employment increased by a seasonally adjusted 162,000 jobs in September, according to the ADP Employment Report. Services-sector employment rose 144,000, while employment in the goods-producing sector added 18,000 jobs.
Manufacturing employment rose 4,000, while construction employment rose 10,000, the strongest increase since March. The financial services sector added 7,000 jobs in September, the 14th consecutive monthly gain.
Total estimated gains in previous months were revised down. The July increase was reduced by 17,000 to 156,000, while the August increase was reduced by 12,000 to 189,000.
Economy Services-Sector Growth Expands in September Services-sector economic activity rose 1.4 percentage points in September and was up for the 33rd consecutive month, the Institute of Supply Management reported. The latest Non-Manufacturing Index registered 55.1 percent, suggesting faster growth in September. ISM’s indexes of business activity and new orders also increased, while the employment index declined but remained above growth-neutral.
Agriculture Farmer Mac Names New CEO Farmer Mac announced that its board of directors has appointed Timothy Buzby as president and CEO. Buzby has been Farmer Mac’s chief financial officer and treasurer since 2009 and previously served as controller. Buzby and the board will work together to select a new CFO.
Poll Take This Week’s Quick Poll Take this week's poll regarding community banks and violations of the Regulation E ATM disclosure placard requirements, and view results from the previous poll on mobile phone use.
Holiday Note ICBA Offices Closed for Columbus Day ICBA offices will be closed Monday for Columbus Day. ICBA NewsWatch Today will resume publishing on Tuesday, Oct. 9.