U.S. lawmakers and state financial regulators on Thursday called on federal officials to revamp proposed rules that would force financial firms to hold much more capital, asking them to consider the impact on small banks and insurance companies.
U.S. bank regulators are writing rules to implement an international accord known as Basel III. The agreement is seen as one of the key reform efforts after the 2007-2009 financial crisis to make the global banking system more resilient.
Under the rules proposed by the Federal Reserve, the Federal Deposit Insurance Corp (FDIC) and the Office of the Comptroller of the Currency (OCC), the biggest banks would have to hold the most capital.
But the rules could pose challenges for community banks and other firms who must meet stricter capital requirements, U.S. lawmakers and state bank and insurance regulators said during a House of Representatives committee hearing.
"The one-size-fits-all approach to regulatory capital in
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