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May 13, 2013 – Comptroller of the Currency Tom Curry last week said regulators should revisit the leverage ratio proposed for under Basel III, the latest iteration of an international standard for financial institution capital requirements.

The Basel leverage ratio has reportedly been described too low by FDIC officials. Reports on Curry's comments last Thursday, delivered in a speech before a banking conference held at the Federal Reserve Bank of Chicago.

The Basel III capital standards have not found their way into NCUA capital rules for credit unions, and NAFCU has told both NCUA and the Federal Reserve Board that they would not be appropriate for credit unions.

Banking regulators issued a proposed capital and liquidity rule last June that incorporate elements of Basel III. FDIC Vice Chairman Thomas Hoenig and Board Member Jeremiah Norton have said the leverage ratio proposed – 3 percent – is too low (American Banker, May 9). Federal Reserve Board Gov. Daniel Tarullo has also been quoted suggesting the ratio isn't high enough.

The Basel III capital standards have not found their way into NCUA capital rules for credit unions, and NAFCU has told both NCUA and the Federal Reserve Board that they would not be appropriate for credit unions.