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Wednesday, January 15, 2014

ABA’s Chessen Talks Banking Environment

Community banks are resilient in a difficult environment, ABA Chief Economist James Chessen said on Bloomberg Radio. “Banks are a reflection of the local economy. When you get out to smaller communities, it’s tough,” he explained. “But the great thing is they’re very resilient and very responsive to their customers. Banking is a relationship business.”

Bloomberg radio co-host Mike McKee asked Chessen about how the recently released Basel III leverage ratio would affect American banks. Chessen pointed out that it’s likely the U.S. regulators will adopt a higher standard than Basel’s. And although “U.S. banks are already much better capitalized than most institutions around the world,” he pointed out, “the higher you set those rates, it does at some point cut off the ability to lend.”

Listen to the interview.

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