Higher Capital
Requirements
Have a Price Tag

And it’s paid by all Americans, through:

expensive

More expensive and fewer loans for families and businesses

financial-information

Slower U.S. economic growth

weakness

Disruptions to key financial markets

caution

Increasing financial risk by pushing activity outside of the regulated sector

globe

Reduced U.S. economic competitiveness

“The U.S. financial system, with $23 trillion in assets, is a large, complex system set up to serve the needs of individuals, corporations, and governments of all sizes.”

SIFMA Research Quarterly - Financial & Research Data, April 2024

Financial Services Forum and SIFMA Basel III Endgame Comment Letters

The Financial Services Forum and SIFMA have submitted comment letters on the proposed Basel III Endgame. If implemented, this proposal would lead to a substantial and unwarranted increase in capital requirements for the largest U.S. banks, which will negatively impact the cost and availability of lending, lead to market disruptions, and have broad impacts throughout our economy.

The Latest News

Bloomberg: Fed Bid to Hike Bank Capital Slammed by Ex-Vice Chair Quarles

July 17, 2023

Former Federal Reserve Vice Chair for Supervision Randal Quarles criticized his successor’s plan to significantly increase capital requirements for big banks, saying it would needlessly hurt the economy.

POLITICO Morning Money: Companies warn about bank capital hike 

July 6, 2023

The Coalition for Derivatives End-Users — a group that represents firms that primarily use derivatives to hedge their financial risk — urged the Fed, FDIC and OCC in a letter today to proceed with caution on raising bank capital requirements.

You Aced the Banking Stress Test. Now Raise More Capital.

June 30, 2023

Big US banks are strong, so why is the Federal Reserve about to impose higher capital requirements?

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.

basel-figure-1-Smart-Bank-Capital-1

An Initiative From