From Rep. Don Manzullo (R., 16th District)…
[WASHINGTON] – Congressman Don Manzullo (R-IL) today said the Fed’s new proposed rules to require all banks to more than double the amount of money they must hold in reserve will harm small banks’ ability to lend money to small employers that create the majority of jobs in America.
Manzullo, a senior member of the House Financial Services Committee, called on the Fed to exempt the small banks from the new capital standards proposed by the international Basel Committee. Smaller community banks with assets under $10 billion should not have to comply with the new capital standards as these banks are already exempt from stricter oversight from the Consumer Financial Protection Bureau and the Fed’s annual stress tests, said Manzullo.
“The community banks had nothing to do with the financial crisis and they should not have to deal with this stricter oversight,” Manzullo said. “Forcing these smaller banks to hold all this extra money in reserve will mean they will have less money to lend to the entrepreneurs looking to expand and put Americans back to work. This will devastate our economic recovery and our small employers’ ability to create jobs.”
Manzullo serves on the Financial Services Subcommittee on Financial Institutions and Consumer Credit as well as the Subcommittee on Capital Markets and Government Sponsored Enterprises.