State banking regulators hammer proposed mortgage risk weights

The Conference of State Bank Supervisors joined the ranks of those voicing concern over the Basel III implementation plans proposed by the federal banking agencies. The organization of state banking regulators said it supports raising minimum capital levels and improving the quality of banks’ capital. However, the group said the proposed rules are “highly reactionary” to recent economic events and may ultimately lead to a capital framework that is “more complex and more prone to volatility.”