WASHINGTON, D.C.— Phillip Basil, Director of Economic Growth and Financial Stability at Better Markets, issued the following statement in response to the federal banking agencies announcing the finalization of changes to the enhanced supplementary leverage ratio and proposed changes to the community bank leverage ratio:

“The banking agencies today are taking simultaneous actions that prove that their priority is fulfilling the agenda of the largest bank holding companies and doing so at the expense of community banks. While the agencies claim to be supporting community banks through the proposed reduction in the community bank leverage ratio capital requirement, they’ve still moved to implement a leverage requirement for the very largest banks that is about half the one proposed for community banks.

“These actions worsen the already grossly unlevel playing field faced by community banks. JP Morgan – a $4.5 trillion banking conglomerate with massive subsidiaries that engage in all sorts of nonbank activities like trading and derivatives – will have about half the leverage capital requirement of a $500 million community bank that simply takes deposits and makes loans to small businesses, farms, and households. This type of upside-down policy making surely will result in even more concentration and fragility within the banking system and less focus on Main Street borrowers.

“Policymakers must stop putting the interests of the largest banks, technology companies, and crypto companies ahead of the banks that actually serve our small businesses and communities.”

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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.