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

The Banker: Fed’s stress test results challenge Basel III Endgame standards

June 28, 2024

In its annual stress test of large US banks, the Federal Reserve has found US banks to be well positioned to deal with a severe recession, adding fuel to the debate about the necessity for further proposed capital requirements under Basel III Endgame.

Bloomberg: The Fed Should Hit Pause on Its Capital Endgame

June 13, 2024

Time is tight for the Federal Reserve’s effort to redraw US bank capital rules, but they shouldn’t rush the job. The better course would be to take a step back and delay a set of proposals that have nowhere near enough support from the industry, politicians or even many regulators themselves.

Bloomberg Markets: SIFMA CEO Says Basel III Endgame Will Impede Capital Markets

June 4, 2024

SIFMA CEO Kenneth Bentsen reacts to the proposed Basel III Endgame rules and discusses what they could mean for US banks. He speaks on Bloomberg Television.

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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