The Endgame proposal aims to improve transparency, stability, and risk assessment but has faced opposition from some financial institutions. Goldman Sachs and other critics are concerned that the rule could lead smaller banks to exercise more caution and, as a result, limit access to credit for riskier loan applicants, including small businesses.
The reform has also faced opposition from banking executives, and non-banking institutions have argued that it could disproportionately impact poorer communities.
The exact consequences of adopting Basel III Endgame remain uncertain, but it aims to address concerns about financial scrutiny and stability in the banking sector. Small business owners are encouraged to understand the potential impact of such regulations on their access to capital and economic strategies.