New Banking Rules Aim for Safety But Could Come at a Cost

• New banking regulations called Basel III Endgame (B3E) aim to make banks more resilient but could have unintended consequences like higher costs for consumers and businesses.

• B3E could reduce bank lending, increase borrowing costs for consumers, limit farmers' ability to hedge crops, and reduce market liquidity.

• By making banking more expensive, B3E may shift lending from banks to less regulated private lenders, possibly increasing risk.

• Banks stand to lose billions in revenue from B3E, giving them incentive to lobby against it.

• More analysis is needed on B3E's costs and benefits before finalizing rules that could negatively impact households, businesses, and the financial system.