More expensive and fewer loans for families and businesses
Slower U.S. economic growth
Disruptions to key financial markets
Increasing financial risk by pushing activity outside of the regulated sector
Reduced U.S. economic competitiveness
“Increased capital requirements can negatively impact economic growth by raising the cost of lending and reducing the availability of financing for corporations and consumers.”
PwC, Basel III Endgame: The next generation of capital requirements, April 2023
“Capital and liquidity levels at our largest, most systemically important banks are at multi-decade highs.”
Federal Reserve Chair Jay Powell, January 2022
The Latest News
“We urge the Federal Reserve and banking regulators to pay particular attention to credit access and affordability for small and minority-owned businesses.”
“The effort was intended to decrease systemic risk, but by focusing narrowly on the risk posed by banks, it would likely increase risk in the mortgage market.”
“Not only are these regulations misplaced and inappropriate, but they also come at a horrible time for small businesses, when headwinds remain relentless, and capital and credit are becoming more difficult and expensive to access.”
The nation’s largest banks are strong and resilient, with significant capital that helps ensure they can support the economy in times of stress.
In the past two decades, the nation’s largest banks have greatly increased both the quantity and quality of capital – a cushion that helps banks absorb losses and continue to serve clients, customers, and communities. They have nearly tripled their common equity tier 1 capital, the highest quality of regulatory capital. They have also taken a number of other measures to build resiliency.
A Solution Looking
for a Problem
In the past two decades, the nation’s largest banks have greatly increased both the quantity and quality of capital – a cushion that helps banks absorb losses and continue to serve clients, customers, and communities. They have nearly tripled their common equity tier 1 capital, the highest quality of regulatory capital. They have also taken a number of other measures to build resiliency.
An Initiative From
