Press release: New campaign will raise awareness of negative economic consequences of Basel III Endgame for everyday Americans

The Financial Services Forum and its member banks launch initiative to educate consumers and small businesses about the economic consequences of the proposal

WASHINGTON, D.C.—The Financial Services Forum today launched a new campaign highlighting how Washington regulators’ proposed capital regulation plan – known as Basel III Endgame – will create "Another Bill Americans Can't Afford." The initiative will raise awareness about the proposal’s negative consequences for American consumers, small businesses, and the economy at large.

"The Basel III Endgame proposal will make lending less affordable and accessible for everyday Americans, at a time when they already may face economic hardship," Financial Services Forum President and CEO Kevin Fromer said. "The nation's largest banks have time and again proven that they are safe, sound, and well capitalized. Additional capital requirements of this magnitude are unwarranted and costly. Policymakers need to understand that this proposed regulation is another bill Americans can't afford."

The Forum, its members, and numerous other trade associations have underscored that there is no justification for significant increases in capital requirements. The  largest U.S. banks have tripled their capital in the past 15 years and supported the economy and the financial system during the pandemic and this year’s banking turmoil. Leading policymakers and regulators have consistently stated that the nation’s largest banks have proven resilient and well-capitalized. The Federal Reserve earlier this year said its stress tests showed large banks were "well positioned" to continue to support the economy even during a severe recession. Ultimately, increased capital requirements are unnecessary and will increase the price of, and reduce access to, essential forms of credit for families and businesses at a time of economic uncertainty.

The Forum’s campaign will explain how the capital regulation plan would disproportionately impact historically underserved communities, hurt the economy at a time of high inflation, and put foreign businesses ahead of U.S. businesses.