US regulators to revise Basel I this summer, says Greenspan

This summer, US financial regulators will propose simple revisions to the current Basel capital rules (Basel I) that would mitigate any unintended and undesired competitive distortions created by Basell II, according to Federal Reserve chairman Alan Greenspan.

Speaking at the Independent Community Bankers of America (ICBA) National Convention in San Antonio, Texas (via videoconference), Greenspan assured smaller banks not mandated to adopt Basel II, that the federal regulators will curb unintended competitive advantages and disadvantages where concerns appear valid.

Although they will not be required to adopt the new capital rules, many community and regional banks are fearful that they will face competitive disadvantages after the 2008 adoption

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