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The new proposals aim to require large banks to hold more capital, especially against risky investments and operational vulnerabilities. Supporters argue that these measures promote better internal risk management and reduce systemic risks. Conversely, critics, including many big banks and some regulatory officials, contend that such rules could be overreach.
Impact on Banking Operations and Lending
One of the main concerns is that increased capital requirements will restrict banks’ ability to lend, especially to small businesses and lower-income borrowers—a fear that has led to campaigns like stopbasilandgame.com. This could slow economic growth and make credit less accessible for essential sectors.