Prudential rules have made the financial system safer and stronger. In fact, recent studies have found capital levels in the US banking system are optimal – balancing financial stability with economic growth. Further increases, including those being considered with Basel III Endgame reforms, will have significant economic costs, particularly on US capital markets. Policymakers should consider the totality of prudential reforms and work toward a level of bank capital that provides a substantial margin of safety without impairing economic growth, lending and capital markets activities.

For more on this important issue, including to read our five-part blog series, visit www.sifma.org/prudential-regulation.

Related Resources

• On Demand

  Basel III Endgame Roundtable

• Comment Letter

  Joint Trades Letter: Forthcoming Proposal to Implement the Basel Agreement of 2017

• Newsroom

  SIFMA Statement on US Implementation of the Basel III Endgame

Blog Series on US Bank Capital Requirements

• Part I in Our Series on US Bank Capital Requirements

  Understanding the Current Regulatory Capital Requirements Applicable to US Banks

• Part II in Our Series on US Bank Capital Requirements

  How the Basel III “Endgame” Reforms Will Transform US Capital Requirements

• Part III in Our Series on US Bank Capital Requirements

  Identifying an Optimal Level of Capital and Evaluating the Impact of Higher Bank Capital Requirements on US Capital Markets

• Part IV in Our Series on US Bank Capital Requirements

  Explaining the Overlap Between the FRTB and the Global Market Shock

• Part V in Our Series on US Bank Capital Requirements

  The Basel III Endgame’s Potential Impacts on Commercial End-Users

• Part VI in Our Series on US Bank Capital Requirements

  Understanding the Proposed Changes to the US Capital Framework