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

American Banker: The Basel III rule would hamstring small businesses like mine 

February 15, 2024

“Small-business owners like me are alarmed at the prospect of Basel III capping our nation’s creative and entrepreneurial wellspring,” writes the founder and CEO of Ethel’s Baking Co.

Politico Pro: Regulators face bipartisan Basel III concerns at House hearing

January 31, 2024

“House Democrats aired concerns Wednesday over capital requirement increases proposed by Biden-appointed banking regulators, illustrating the bipartisan pressure on the agencies to change some aspects of the Basel III Endgame proposal.”

American Banker: I was a Fortune 500 treasurer; to me, the Basel endgame looks ominous

January 23, 2024

Former Chair of the National Association of Corporate Treasurers, Thomas Deas, says “the Fed’s proposed capital rules are a price increase for companies of all sizes and in all sectors.”

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

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