On Nov. 9, 2012, the Federal Reserve Board, the OCC, and the FDIC announced that proposed rules to implement the Basel III regulatory capital accords will not take effect on Jan. 1, 2013. The agencies cite the large volume of comments received in response to the proposed rules as the reason for the delay. Recently, members of three states' congressional delegations (Texas, Indiana, and South Carolina) joined others in submitting letters to the federal banking regulators in response to the proposed Basel III regulations.
The letters all raise concerns about the potential disproportionate impact of the proposed rules on smaller, community and regional institutions, and challenge the attempt by regulators to apply international accords to all U.S. institutions regardless of size. These legislators join other federal and state policymakers who have submitted similar comments in recent weeks. Scrutiny of the proposals will continue at a Senate Banking Committee hearing planned for Nov. 14, 2012 to review the pending rules with representatives from the Federal Reserve Board, the OCC, and the FDIC.