Federal Reserve Board of Governors Vice Chair for Supervision Michael Barr stated today that Basel III Endgame will apply to less than 1% of banks in the country.

This implies that the impact of the proposal will be minimal, which is not the case. In fact, U.S. banks subject to Basel III Endgame account for 81% of U.S. banking assets. The impact of the proposal will be far-reaching, affecting consumers, businesses, and the economy.

Here's the quick facts about the banks the proposal will impact:

• "The eight U.S.-based Global Systemically Important Banks alone are significant contributors to the economy, holding $811 billion in consumer loans, investing billions of dollars in CDFIs and MDIs, and meeting two-thirds of the funding needs of other financial institutions." ("The Basel III Endgame Proposal – Separating Fact from Fiction," Financial Services Forum, 11/14/2023)
• "Forum members – the eight U.S.-based Global Systemically Important Banks – hold $93 billion in small business loans, representing one-third of all small business loans made by banks." ("The Basel III Endgame Proposal – Separating Fact from Fiction," Financial Services Forum, 11/14/2023)
• "Available estimates suggest that the impact of the proposal on the entire U.S. banking sector is expected to result in an economy wide reduction in output of between $100 billion and $150 billion per year." ("Capital Requirements for the Largest U.S. Banks – Separating Fact from Fiction," Financial Services Forum, 2023)

The growing chorus of stakeholders across industries raising concerns about Basel III Endgame have made it clear: if implemented, its negative impacts will be felt by everyone.