FOR IMMEDIATE RELEASE
ICBA Statement on Basel II Agreement
Washington, D.C. (July 20, 2007)—Karen Thomas, executive vice president and director of government relations for the Independent Community Bankers of America (ICBA), issued the following statement following the announcement that the federal banking agencies reached an agreement on implementation of the Basel II capital accords:
"While ICBA is disappointed that the agencies are eliminating the 10 percent aggregate trip wire safeguard, we are pleased they will retain the individual bank capital floors beyond the three-year transition period until any material deficiencies in the new framework identified by a planned study are addressed. We are concerned that the agencies' agreement leaves open the possibility of divergent treatment and action by individual agencies if they disagree on findings of material deficiency.
"ICBA has expressed its concern about the impact of Basel II on the domestic competitive landscape, and we look forward to reviewing the proposed rule regarding a standardized option for non-core banks under Basel II to replace the earlier Basel IA option."