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Basel III and its impact on smaller regional banks, really?
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?
1 comments · 4 points
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.