Washington, DC – FIA president and CEO Walt Lukken today made the following statement on the bank capital proposal announced by US regulators.
“FIA is pleased that the US bank regulators have recognized our concerns about the potential impact of disproportionately high bank capital requirements on agriculture, energy and other end-users. These market participants rely on banks to provide clearing services for hedging risk, particularly during times of stress.
“In 2024, FIA expressed strong opposition to the prior version of proposed changes. We warned that those changes would lead to a substantial increase in the amount of capital that banks would be required to hold for client clearing. FIA estimated that the six largest US banks that offer clearing would have to increase their capital requirements for client clearing by more than 80%. This would have materially hindered their clearing capacity.
“We look forward to reviewing the revised proposals and providing detailed feedback.”
