Now is the Time for All Community Banks to Act
September 28, 2012
CBAI has strongly encouraged the banking regulators to exempt community banks from the proposed implementation of Basel III and allow community banks to continue to operate under Basel I capital requirements. Read Letter.
In our opinion, Basel III was originally designed to prevent another financial crisis and should apply only to the largest and internationally active banks. Community banks did not engage in the reckless behavior that contributed to the financial crisis and subsequent economic downturn. Community banks have lower risk profiles because they operate under a relationship-based business model.
CBAI is committed to inform you about Basel III and to vigorously represent your interests with the banking regulators. It is vital that you become familiar with the proposed rules covering new capital requirements and asset risk weights. If implemented as proposed, these rules may endanger the existence of your community bank. Your opportunity to inform the regulators about their impact on your bank and to help shape the rules will expire on October 22nd. Your voice must be heard! Now is the time to speak-up - and we can help. You can read CBAI’s comment letter and learn how you can comment on these harmful proposed Rules at CBAI’s Basel III Resource Center.