Smaller banks could catch break from Main Street act

Banks could have an option to hold on to more of their capital for a longer period of time if a bill sponsored by Colorado Rep. Ed Perlmutter proves successful.

House Resolution 1356, which is supported by House members on both sides of the aisle, would provide banks with amortization authority for purposes of capital calculation. Under the bill, an insured depository institution with assets of less than $10 billion could choose to amortize any loss or write-down with respect to a commercial real estate loan or other real estate owned.

The amortization would have to occur on a quarterly straight-line…