By Deon Roberts, Charlotte Observer
Winston-Salem’s BB&T Corp. is one of 10 regional lenders that have formed a coalition to argue they should not face the same post-financial crisis regulations imposed on the biggest U.S. banks.
The Regional Bank Coalition, based in Washington, D.C., announced its launch on Monday. BB&T, the third-largest bank by deposits in the Charlotte metropolitan area, is the only Carolinas-based lender in the group.
The coalition says it objects to Dodd-Frank Act requirements that apply to bank holding companies like theirs with at least $50 billion in assets. One requirement for such banks is that they participate in the Federal Reserve’s annual “stress tests.” Another is that they write “living wills,” plans for rapidly dismantling themselves in times of financial distress.
The coalition says $50 billion is an arbitrary threshold. Instead, bank regulations should reflect the amount of risk a particular lender poses to the financial system, the coalition says. Despite their larger size, regional banks have a business model that closely resembles that of community banks, the coalition says.