Bank of America CEO Brian Moynihan remains optimistic about the U.S. economy, expecting a soft landing due to the sustained strength of consumer spending.
Speaking at a luncheon hosted by the Economic Club of New York, Moynihan stated, “We anticipate that there will not be a recession,” attributing this to the strong consumer spending that has dispelled previous concerns about a downturn.
Moynihan also highlighted the robust state of BofA (NYSE:BAC) customer savings and the credit quality of commercial customers.
The CEO applauded the Federal Reserve for effectively managing inflation, cautioning that they must now strike a balance to avoid excessive tightening.
Regarding the proposed higher capital requirements for U.S. banks, known as the ‘Basel III endgame’, Moynihan voiced concerns shared by other industry leaders.
He warned, “These regulations could potentially undermine the global competitiveness of U.S. banks,” expressing surprise at the level of controversy surrounding the capital rules.
Alastair Borthwick, BofA (BAC) CFO, had previously cautioned that the proposed rules might limit bank lending by double counting risk-weighted assets in certain scenarios.
These concerns are echoed by JPMorgan CEO Jamie Dimon, Goldman Sachs CEO David Solomon, and several Federal Reserve governors who have raised alarms about the risks to bank lending.