What The Experts Are Saying

Policymakers from across the political spectrum have underscored how the largest U.S. banks are strong, resilient, and well capitalized.

Federal Reserves System Seal

“Large banks are well positioned to weather a severe recession and continue to lend to households and businesses even during a severe recession."

“As of the fourth quarter of 2022, banks in the aggregate were well capitalized, especially U.S. global systematically important banks (G-SIBs)."

Federal Reserves System Seal
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“...capital and liquidity levels at our largest, most systemically important banks are at multi-decade highs.”

“The American banking system is really safe and well-capitalized, it's resilient."

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“Our banking system is sound and resilient, with strong capital and liquidity.”

“Our banking system is well capitalized...There is adequate capital and liquidity in America's banking system."

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“The banking system is very strong, well-capitalized, highly liquid, does a much better job of understanding the risks that it runs and managing them than before the global financial crisis. And that’s, that’s a reflection of the work that regulators did and that the banks did, too. So that part of the financial system is critically very strong. And we saw that through the pandemic, and we see it now.”

“The federal banking system remains healthy, despite challenges from the pandemic, current geopolitical events, and rising interest rates. Bank financial conditions and capital levels have been sound for several years and bank liquidity levels have been strong, supporting increases in loan demand, especially in consumer lending.”

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“Banks entered the pandemic with strong capital and liquidity buffers, especially those banks whose size and complexity are systemically important. Strong capital and liquidity buffers allowed the banking system to accommodate the unprecedented demand for short-term credit from many businesses that sought to bridge the pandemic-related shortfalls in revenues.”

“...the largest banks have maintained high levels of capital, and their resilience has been repeatedly confirmed by both supervisory and real-life stress tests. Most notably, the U.S. financial system faced the onset of the pandemic in the spring of 2020, which disrupted financial markets and raised fears of a severe crisis.”

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“Banks have adequate capital.”

“Capital and liquidity in the system is very strong.”

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A Solution in Search of a Problem?

During the pandemic and in recent times of financial instability, the nation’s largest banks have underscored their position of strength and stability, lending to consumers and businesses, facilitating robust capital markets activity, and acting in direct support of the broad financial sector.

Still, some suggest the largest banks in our country need still more capital. But there is no compelling evidence to back up these arguments.