Regulatory Capital: Regulatory Capital and Standardized Approach for Risk-Weighted Assets

The Bankers Association for Finance and Trade (BAFT) supports the general direction of the proposed regulatory capital rules, particularly the intent to improve risk sensitivity and simplify the framework. However, they argue that the proposals could negatively impact trade finance and request specific amendments to ensure that low-risk trade products are not unfairly penalized or made more expensive for U.S. companies.

The Independent Community Bankers of America (ICBA) supports the proposed mortgage-related revisions to the Standardized Approach but argues that further refinements are needed to ensure parity with large banks. They advocate for specific risk-weight reductions for community bank assets, the inclusion of PMI in LTV calculations, and a clear justification for any capital relief provided to large institutions.

The Maryland Chamber of Commerce supports the proposed reforms to the federal regulatory capital framework, noting that they simplify requirements and better align capital measures with underlying risk. The organization argues that these changes will reduce regulatory burdens and expand access to credit for small businesses and entrepreneurs.

The New Jersey Black Issues Convention (NJBIC) supports the proposed reforms to federal bank capital requirements, arguing that they will expand lending capacity and improve access to affordable credit. The organization emphasizes that these changes will benefit historically underserved communities by supporting homeownership, small business expansion, and economic mobility for African American residents.

Valley National Bancorp and Valley National Bank support the agencies' objectives of improving risk sensitivity and reducing complexity in the revised regulatory capital framework. However, they argue that the proposal disproportionately benefits large institutions and request specific refinements to the Standardized Approach to better account for the risk profiles of commercial real estate and commercial and industrial loans.

Marilyn D. Davis, President & CEO of MDD Connections, LLC, supports the proposal to revise the U.S. standardized approach to capital requirements. She argues that the proposal will expand access to affordable credit for individuals, small businesses, and community-based financial institutions, thereby promoting economic growth and financial inclusion.

The Consumer Alliance for a Strong Economy (CASE) supports the proposal because it aims to lower capital requirements and improve the availability of affordable credit for small businesses, farmers, and entrepreneurs. They argue that the change will enhance American global competitiveness and provide essential financial opportunities for minority-owned businesses and startups.

Senator Jared Carpenter of Kentucky supports the proposal, arguing that it will lower borrowing costs and expand credit access for rural businesses and families by streamlining regulatory frameworks. He also suggests that the agencies should go further by reducing GSIB surcharges to unlock even more lending capacity.

Jayson Williams, owner of a minority-owned community development firm, supports the proposed capital requirements rule. He argues that the proposal will lower borrowing costs and expand access to affordable credit for small businesses and homebuyers by reducing regulatory burdens and increasing competition in the mortgage market.

Jamel Holley, a former New Jersey State Assemblyman and Mayor, supports the proposed capital requirements framework. He argues that the proposal will reduce regulatory burdens, lower borrowing costs for African American families and small businesses, and enhance America's global competitiveness.