Basel III and its impact on smaller regional banks, really?

asked by u/yarabakri · 10d · 1 answers

I'm trying to wrap my head around the true impact of Basel III's capital requirements on regional banks, especially those not actively playing in the international markets. Seems like a disproportionate burden for managing local credit risk. Are we really just creating a compliance headache that chokes off lending to Main Street, or am I missing some crucial nuance about systemic risk in these smaller institutions?

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  • u/kwame_mensah· 15 pts· 10d

    That's a fair point. It does seem like a blanket approach might not fit every bank, especially the smaller ones focused on local economies. I wonder if there's an argument to be made about the cumulative effect of many small banks failing, even if individually they aren't 'systemically important' on an international scale.

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