JPMorgan Warns Basel III Rules Could Curb Credit for 7 Million Small Businesses
Updated
Updated · Fox News · Aug 21
JPMorgan Warns Basel III Rules Could Curb Credit for 7 Million Small Businesses
1 articles · Updated · Fox News · Aug 21
Summary
Stevie Baron, who oversees JPMorgan Chase’s business bank, said proposed Basel III Endgame rules could raise borrowing costs and reduce bank credit for small businesses.
The bank’s main objection is to changes in the GSIB surcharge formula, which Baron said would favor trading over lending and penalize routine banking services used by Main Street firms.
Baron said recent revisions to the 2023 proposal were a step forward but urged regulators to rework the short-term wholesale funding factor and avoid stacking multiple capital requirements on the same risks.
JPMorgan’s business bank serves more than 7 million small and midsize businesses and held over $19 billion in average business loans in fiscal 2025, giving the warning weight as rules near finalization.
Basel III was built after the 2008 crisis to strengthen bank buffers, but U.S. regulators withdrew an earlier draft after industry pushback and are still weighing changes after a March rewrite.