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James Dornbrook: Bank regs threaten harmful outcomes

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New rules aiming to make the banking system safer may make things worse for community banks, forcing them to slow lending and forgo growth. At the core of the issue is a new requirement stemming from an international accord known as Basel III. The measure requires banks to maintain a higher level of reserves by 2019 to be considered a “well-capitalized” institution by banking regulators. Missing the mark results in a ban on paying dividends to shareholders. This is a particularly thorny issue…

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