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US Bank Capital Regulation: History and Changes Since the Financial Crisis

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  • John R. Walter

Abstract

Following the financial crisis of 2007-08, capital requirements were revised along a number of important dimensions with the intent of shoring up the banking system and reducing the likelihood of another crisis. Changes included new measures of capital and increased minimum requirements, with special emphasis on requirements for the largest and most systemically important banks. In this article, I survey the history of bank capital requirements and review the new capital rules.

Suggested Citation

  • John R. Walter, 2019. "US Bank Capital Regulation: History and Changes Since the Financial Crisis," Economic Quarterly, Federal Reserve Bank of Richmond, issue 1Q, pages 1-40.
    • Handle: RePEc:fip:fedreq:00064
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    References listed on IDEAS

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    1. Leonardo Gambacorta & Sudipto Karmakar, 2018. "Leverage and Risk-Weighted Capital Requirements," International Journal of Central Banking, International Journal of Central Banking, vol. 14(5), pages 153-191, December.
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    3. Tarullo, Daniel, 2008. "Banking on Basel: The Future of International Financial Regulation," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 4235, October.
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    6. Sabrina Pellerin & John R. Walter, 2012. "Orderly liquidation authority as an alternative to bankruptcy," Economic Quarterly, Federal Reserve Bank of Richmond, vol. 98(1Q), pages 1-31.
    7. Huberto M. Ennis & David A. Price, 2011. "Basel III and the continuing evolution of bank capital regulation," Richmond Fed Economic Brief, Federal Reserve Bank of Richmond, issue Jun.
    8. James B. Bullard, 2008. "Systemic risk and the macroeconomy: an attempt at perspective," Speech 136, Federal Reserve Bank of St. Louis.
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    Cited by:

    1. Nina Boyarchenko & Domenico Giannone & Anna Kovner, 2020. "Bank Capital and Real GDP Growth," Staff Reports 950, Federal Reserve Bank of New York.
    2. Meier, Samira & Rodriguez Gonzalez, Miguel & Kunze, Frederik, 2021. "The global financial crisis, the EMU sovereign debt crisis and international financial regulation: lessons from a systematic literature review," International Review of Law and Economics, Elsevier, vol. 65(C).
    3. Joseph G. Haubrich, 2020. "A Brief History of Bank Capital Requirements in the United States," Economic Commentary, Federal Reserve Bank of Cleveland, vol. 2020(05), pages 1-6, February.
    4. repec:prg:jnlcfu:v:2021:y:2021:i:3:id:563 is not listed on IDEAS
    5. Anna Spoz & Ilona Skibinska-Fabrowska & Grzegorz Kotlinski & Helena Zukowska, 2021. "The Impact of the Covid-19 Pandemic on the Financial Performance of Public Companies in Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 955-976.
    6. Ghulame Rubbaniy & Ali Awais Khalid & Stathis Polyzos & Balqees Naser Almessabi, 2022. "Cyclicality of capital adequacy ratios in heterogeneous environment: A nonlinear panel smooth transition regression explanation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 1960-1979, September.
    7. Müting, Miriam, 2020. "Multinational lending retrenchment after the global financial crisis: The impact of policy interventions," Discussion Papers in Economics 72612, University of Munich, Department of Economics.

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    Keywords

    bank capital; capital requirements;

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