Joint Trades Statement for the Record on the hearing entitled "Oversight of Prudential Regulators"

The below business trades welcome the opportunity to submit the following statement for the record as part of the House Committee on Financial Services hearing on “Oversight of Prudential" Regulators."

Collectively, the undersigned business trades represent a wide range of stakeholders across the economy, including banks, leading companies, housing groups, small businesses, manufacturers, energy producers, and farmers that all create jobs and fuel America’s economic growth and competitiveness at home and abroad. We greatly appreciate the work being undertaken by bank regulators to modernize capital rules to unleash economic growth and support various industries and sectors across the country. Specifically, common sense adjustments to Basel III Endgame, the GSIB Surcharge, stress testing, and leverage requirements will improve access to credit and reduce the costs of goods and services for American businesses and consumers, ensuring the U.S. economy can continue to thrive and grow.

Bank Capital Rules Significantly Impact the American Economy

Large bank capital rules have a significant impact across the U.S. economy. Capital is the most expensive form of finance and unnecessarily high and increasing capital requirements increase the cost of lending and other financial services. Whether it is a small business seeking a loan, a family looking to save for the future, farmer, or energy producer looking to hedge the price of their commodities, inappropriately calibrated and designed capital requirements reduce Americans’ productive capacity as their ability to borrow, invest, and power the economy are stymied.

The lost economic output is concerning. Importantly, a review of 13 economic studies found that increased capital requirements can cost the economy $100 billion to $150 billion per year and result in $2.3 trillion in lost economic productivity over 30 years. Now is the time to modernize capital requirements to further stimulate economic growth and prosperity for American consumers and businesses.

Download the joint trades statement for the record to read the full text.