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

Politico Pro: OCC chief: Agencies will ‘very seriously consider’ changes to bank capital proposal

March 15, 2024

“If there’s a better way to capture a particular risk, make it both risk-sensitive and consistent, and calibrated in a way that’s prudent and reasonable, and it’s better than what we proposed, we will obviously take a really close look at that and consider it,” Acting Comptroller of the Currency Michael Hsu said.

American Banker: Powell: Basel III is not the Fed’s answer to Silicon Valley Bank

March 15, 2024

“We have taken and are taking many more steps to deal with the problems that revealed themselves with Silicon Valley Bank,” Powell said, adding: “The Basel III rules are not directly related, they are not the thing that is directly related to Silicon Valley Bank.” 

CNBC: Green energy projects at risk

March 11, 2024

CNBC’s Emily Wilkins reports that an odd coalition of banks, renewable energy and lawmakers are warning that new proposed capital requirement rules would prevent future clean energy projects, as a majority need critical funding from banks.

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