JPMorgan Chase Warns Proposed Rules Could Squeeze Credit for Small Businesses
A top executive at JPMorgan Chase has warned that proposed federal bank capital rules could damage small businesses across the country.
JPMorgan Chase Business Bank CEO Stevie Baron said in a memo obtained by Fox News Digital that the current framework could potentially have unintended consequences for small businesses as capital requirements could prevent lending.
The proposed changes to the Global Systemically Important Bank (GSIB) surcharge, which JPMorgan Chase is subject to as a GSIB, would encourage trading over lending, raising borrowing costs for millions of small business owners, Baron said.
Baron specifically noted that regulators should reconsider the proposed changes to the GSIB surcharge calculation and retain the current approach to the short-term wholesale funding factor, which accounts for the size and funding diversification benefits of universal banks.
JPMorgan Chase CEO Jamie Dimon has been a proponent of expanding access to credit for small businesses through the American Dream Initiative, which aims to increase the number of small and medium-sized businesses to ten million.