Global securities industry lobbyists are speaking out against planned hikes in capital requirements for banks and the possible introduction of financial transaction taxes, warning that such steps will harm economic growth.

The Global Financial Markets Association (which is comprised of the Association for Financial Markets in Europe, the Asia Securities Industry & Financial Markets Association, and the US Securities Industry and Financial Markets Association) released a statement ahead of this weekend’s meeting of G20 finance ministers in Paris, which warns that proposed new capital and liquidity standards, known as Basel III, are excessive. The GFMA says that higher capital requirements will significantly impact financial institutions and their ability to provide credit.

“Requiring excessive regulatory capital,” it warns, “will limit the ability of financial institutions from facilitating capital formation to the commercial sector that, in turn, supports new investment critical to economic growth and job creation. We continue to stress that the G20 must not impose an unrealistic implementation timeline given the cumulative impact these new standards will have on financial institutions, and their ability to provide capital that fuels economic growth.”

The lobby group also says that it continues to oppose a plan to impose an additional capital surcharge on financial institutions that are deemed systemically significant, as this would further impair their ability to provide credit.

And it also strongly opposes the possible imposition of a financial transaction tax, which is being proposed in Europe with the intent of pushing for its global adoption. The GFMA warns that such a tax will cause financial industry business to flee jurisdictions that impose the tax to those that don’t.

Finally, it calls on the G20 and the finance ministers to ensure consistency and coordination of new financial regulations across all jurisdictions. “These efforts will avoid extraterritorial conflicts, market confusion and will protect against the potential for regulatory arbitrage across borders,” it says.