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-- rule little under an international agreement known as Basel III.
My next guest says that role and others like an avalanche of regulations fitting and crushing the community -- System Camden Fine as CEO the Independent Community Bankers Of America a trade group.
The represents thousands of banks and he joins us now Camden thank you for the for joining us let it it was my understanding the community banks.
Already have a higher capital standard is that right.
Did they generally have higher capital ratios.
But they do that voluntarily.
Because of their business model.
However the Basel III capital guidelines which were originally.
Created for large internationally active banks.
Will now be applied according to our regulatory agencies to community banks of all places so even a little fifty million dollar asset bank would have to comply with Basel III.
And that's just insane these are.
Capital requirements that were never intended to apply to a small domestic bank.
This these are already hard times margins a very slim what kind of impact would this have on the small community banks -- I'll tell you what would happen.
Credit would dry up especially for first time borrowers young borrowers.
Small businesses would suffer.
In -- since the infrastructure.
Of small towns cities and rural areas would accuracy.
Because community banks would begin to disappear because they just can't meet.
Of not only regulation but unreasonable capital guidelines some of this reasoning then you'd have like choice bank of Oshkosh Wisconsin.
Being treated as that kind of bank to could literally bring down the global financial system I mean that's the reasoning right.
That yes -- I mean that's what's that's what's so ridiculous I mean you could have the first national bank of Peoria.
Having to adhere to the same capital guidelines is HSBC.
And it's just insane.
And and it inhibits those banks from serving their local communities.
And their customers in those communities and you know of the US is somewhat unique isn't it because it has bought some 7000.
Or more of these small regional community bank something that perhaps the international regulators are not battle -- -- That's exactly correct actually.
The United States is unique because we have the only community banking system of its kind in the world.
And quite frankly the international.
Don't have a clue that we have 7000 community banks they only look at the large internationally.
Active banks and they don't even see our community banks.
Very good stuff Camden Fine of the IC PA -- thank you very much for joining us thank you appreciate that.
Obviously some mention -- the Federal Reserve has an extended the comment period by the way for the proposal of this.
That would force those banks to comply with Basel III -- -- -- small small community banks which.
Little overkill to say Italy's.
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