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ABA: The American Bankers Association
Statement

ABA Statement on Tailoring of Prudential Standards

“We thank the Federal Reserve along with the FDIC and OCC for their diligent work to implement the bipartisan banking law passed last year, a core theme of which was to tailor regulations to risk so banks can better serve their customers and communities. Tailoring regulatory requirements to fit each bank’s business model improves supervision by allowing regulators to better allocate resources and focus on risks. An appropriately calibrated regulatory regime permits regulators to more effectively apply financial stability rules, reinforcing the strength of US bank regulations. This means banks can continue to fulfill their critical role as financial intermediaries in a safe and sound manner, while continuing to promote economic growth. We recognize that this is an ongoing process, and encourage the Fed to continue its efforts to identify ways to make regulatory requirements more clear, efficient and consistent.

“The changes made to prudential regulatory standards today builds on what regulators and banks have together learned from several years of evolving these programs through actual experience. We look forward to continuing to work with the banking agencies to ensure that capital and liquidity requirements are appropriately synchronized so that one does not undermine the beneficial effects of the other. This will only help promote access to banking services for people and businesses across the country while promoting jobs and investment in our communities.”

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About the American Bankers Association

The American Bankers Association is the voice of the nation’s $18.6 trillion banking industry, which is composed of small, regional and large banks. Together, America’s banks employ more than 2 million men and women, safeguard $14.5 trillion in deposits and extend more than $10.5 trillion in loans.

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