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

Reuters: Fed’s Bowman backs ‘targeted’ bank rules reform but not ‘radical’ change

June 20, 2023

“Radical reform of the bank regulatory framework – as opposed to targeted changes to address identified root causes of banking system stress – is incompatible with the fundamental strength of the banking system.”

American Banker: Moderate Democrats appear skeptical of tighter bank regulations

June 19, 2023

“During a Senate Banking hearing with regulators, some centrist Democrats bristled at the idea of making sweeping policy changes in response to a recent string of bank failures.”

U.S. Chamber: Letter to the Federal Reserve

June 18, 2023

“Increasing capital requirements at this moment could put downward pressure on the economy, or make a widely anticipated recession worse if it were to occur. Small businesses don’t need the added challenge of constrained availability of affordable financing, especially at a moment when interest rates are high.”

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