WASHINGTON, D.C. - In response to today's announcement that federal regulators will delay the implementation of Basel III standards, U.S. Senator Pat Toomey (R-Pa.) urged the U.S. federal banking agencies to make substantive changes to proposed regulations governing community banks. 

 This delay comes after Sens. Toomey and Warner (D-Va.) sent a bipartisan letter in September to Federal Reserve Chairman Ben Bernanke, Federal Deposit Insurance Corp. Acting Chairman Marty Gruenberg and Comptroller of the Currency Tom Curry urging them to consider the impact that new Basel III capital standards would have on community banks. The letter was signed by a majority of U.S. Senate members and is available here.

 "I am glad the federal banking agencies have recognized the need to consider the 1,500-plus comments they've received, including the bipartisan letter Sen. Warner and I sent," Sen. Toomey said. "But this delay is not sufficient. These Basel III rules would place a significant burden on community banks, which play a vital role in the economic development of our cities and towns. Regulators need to consider the crucial differences between community banks and larger institutions when devising capital standards.

 "I urge the regulators to withdraw the current proposals, make substantive changes, and re-propose the capital rules in a timely manner. I look forward to the Senate Banking Committee hearing next week and hope to receive appropriate answers."