Federal banking regulators have proposed raising capital requirements for American banks. This would increase costs for consumers and make it harder and more expensive for businesses to grow. Banks would likely make fewer loans, and businesses looking to obtain financing to expand would have fewer financing options at higher prices. Without fully demonstrating the need, regulators have proposed to significantly increase the cost of accessing capital across the American economy. This will slow Main Street growth at a time when businesses are signaling a desire for more credit.
Why it matters: Tougher bank regulations would make bank credit more expensive for borrowers, which could hurt investment and economic growth, especially for small business and local economies.
