U.S. regulators should finalize Basel III rules, says Fed’s Raskin

It is important that U.S. federal regulators take action to finalize the nation's interpretation of the Basel III capital requirements, Federal Reserve Governor Sarah Bloom Raskin stated on June 6.

It is important that U.S. federal regulators take action to finalize the nation's interpretation of the Basel III capital requirements, Federal Reserve Governor Sarah Bloom Raskin stated on June 6.

While the government agencies responsible for creating the nation's Basel III rules had previously set a deadline of January 1, 2013, for banks to begin their implementation, they announced late last year that they were going back on those plans. Though the agencies announced they will move back this time frame for adopting the rules, they failed to provide any more information on when these banks would need to start complying with the rules.

Raskin also noted the concerns that have been expressed by those representing smaller lending institutions, as these individuals have stated that the Basel III capital requirements were designed to manage risk at larger organizations, according to Dow Jones Newswires.

She said that while the rules may not be as relevant to smaller lending institutions, banks need greater certainty about the rules and regulations in existence, the media outlet reports.

"Time is of the essence here in moving forward with the Basel III final rules," said Raskin. "The proposed rules were not perfect and I expect there to be meaningful modifications."

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