Brian Moynihan, CEO of Bank of America, expressed the opinion that the new capital requirements should form a space of equal conditions for all representatives of the US banking sector.

During a conversation with journalists, the head of the financial institution said that in the process of approving new rules as mandatory, a strategy of the most cautious and deliberate approach should be followed. This is important because any shortcomings, in this case, can form a general systemic flaw, which will eventually lower the level of competitiveness of the US banking sector.

Brian Moynihan, explaining his position, clarified that in this case, financial institutions that are part of the so-called Big Eight are not meant, but a situation where a bank worth $ 30, 40, or 100 billion cannot withstand the onslaught of a competitive field since the supplier’s lender in Europe provides a lower cost of capital.

This statement was made on the eve of an expected announcement by American banking regulators on proposals to tighten capital requirements for financial institutions. The media reports that the draft norms will comply with the concept of the Basel III agreements.

The CEO of Bank of America, during a conversation with reporters, also said that the risk-weighted assets of major lenders in the UK, France, and Germany account for approximately 50% of assets in the United States. He also noted the abundance of capital within the industry in the United States. According to him, the industry is doing a great job. Separately, he noted that the US has a lot of capital, a lot of liquidity, and a good management and regulatory system.

Federal Reserve Chairman Jerome Powell said during a hearing before the Senate Banking Committee in June that financial institutions with assets worth less than $100 billion would not be the affected party as a result of the adoption of new rules. The concept of requirements to creditors under discussion provides that banks will be required to retain most of their capital in comparison with current volumes. This initiative has been discussed after the March collapse of regional financial institutions in the United States.

There is also information that the new concept of capital requirements will oblige compliance with international standards Basel III banks whose assets range from $100 billion to $250 billion.

Jerome Powell has changed his position on capital requirements. Initially, he stated that the rules under discussion should be adapted for small and medium-sized financial institutions.

As we have reported earlier, Bank of America Uses AI to Train New Hires.