There’s an update for the Basel III rules that have small, local banks concerned.
The new international standards won’t go into effect on Jan. 1 as initially thought.
David Oliver with the Georgia Bankers Association says the implementation has been delayed so the Federal Reserve and other banking authorities can more thoroughly study the thousands of comments against the standards.
Most of our local banks expressed displeasure in having to suffer the consequences of post-recession rules that have been drawn up to prevent a repeat of the financial crisis that they had no hand in causing.
The Swiss-based Basel Committee on Banking Supervision proposed reforms that change the amount of capital that banks need to hold in reserve and change the risk assessment of certain kinds of assets. So, the more money that a bank has to squirrel away for those reserves is less money available to lend out. Not exactly a good idea in the midst of an economic recovery that seems to be gaining steam.
Small banks are trying to get exempted from Basel III.
And the new implementation date is unknown, not only because the Fed is looking into things more closely, but Congress is also scheduling hearings.
INTERESTNG READING FROM AN ATLANTA THINK TANK: The Georgia Budget & Policy Institute says the Great Recession wiped out two decades of progress for Georgia’s poor and middle class.
See the report at: gbpi.org/wp-content/uploads/2012/11/state-of-working-georgia-2012-11202012-web-FINAL.pdf