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
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“There is no cumulative impact statement from the agencies, and that’s just a profound failure of analytical rigor,” Karen Petrou, managing partner of Federal Financial Analytics, said.
“Sensible regulation depends on knowing when a tool loses its effectiveness and becomes counterproductive. More is not always better.”
“The implication is a massive reduction in the amount of capital that’s available to decarbonize our energy system and make investments in cheaper energy assets,” Rep. Sean Casten (D-Ill.) said in an interview.
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.
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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.
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