Ballard Spahr, January 23, 2024, Banking And Non-Banking Industries Voice Concern Over Basel III Endgame Proposal’s Potentially Significant Negative Impact On Consumers
Non-banking trade groups have echoed some of the same sentiments and concerns as those outlined in the CBA’s White Paper. Several affordable housing, civil rights, and urban advocacy groups, including the National Housing Conference, NAACP, and the National Urban League, issued a joint letter to the federal agencies noting potential for a “devastating impact” on efforts to increase homeownership in communities of color. Calling the proposed new capital requirements “overly aggressive,” the National Community Reinvestment Coalition, which has historically favored stronger lending regulations, suggested in its letter to the federal agencies that they adopt the effective but less punitive risk weightings under Basel III. Black Leaders Organizing for Communities, an advocacy and campaigning organization, also voiced concerns over the effects of the proposal and urged regulators not to adopt requirements that could negatively impact mortgage credit for historically underserved populations and communities. Business groups like the Business Roundtable expressed concerns regarding the proposal’s potential to reduce innovation and economic growth.
