Shortly before the comment deadline on the increasingly-contentious inter-agency proposal to implement the Basel III rules, the FDIC has asked for additional comment on the impact of the standardized approach on smaller institutions. This reflects growing pressure from community banks strongly opposed to the notice of proposed rulemaking (NPR). While the FDIC request for views is focused on small-bank concerns, issues in it have broader financial-industry impact and the general offer for comment may prompt another round from many entities concerned with the U.S. version of these capital rules. Despite the seemingly small dollar impact of the NPR (see below), the FDIC’s initial analysis found that the standardized NPR had significant impact on covered small banking organizations.

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