Capital Rule Comment Period Extended
Mon Oct 23, 2023 - bivey@imfpubs.com
Efforts by trade groups to delay a new proposal on capital requirements for larger banks appear to have paid off. Late last week, federal regulators announced the comment deadline for the proposal has been delayed until Jan. 16.
The language was issued in late July with an original comment deadline of Nov. 30.
Trade groups representing banks and mortgage lenders have raised grave concerns about the new guardrails, warning it will reduce originations by banks, harm the value of mortgage servicing rights and increase the cost of warehouse lending by banks to nonbank mortgage companies, among other issues.
Associations have called on regulators to reconsider the proposal altogether or to at least extend the comment deadline. Federal regulators said they extended the comment deadline “to allow interested parties more time to analyze the issues and prepare their comments.”
Industry trade groups have also raised concerns about the existence of the capital requirement proposal while a proposal to revise standards under the Community Reinvestment Act remains outstanding. Federal regulators said they will issue a final rule with CRA revisions Oct. 24.
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