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Opinion
The Editors

No, Banks Aren’t Stronger Than They Need to Be

Capital standards have proven their worth. They should be restored, not weakened.

On it.

On it.

Photographer: Ting Shen/Bloomberg

The 2020s have so far served as something of an advertisement for financial regulation. The litany of travails and transgressions in the realms of crypto, fintech, pension funds and more amounts to a resounding endorsement of the safety and soundness standards that traditional banks must meet.

It’s thus strange that some want to weaken one of the financial system’s most fundamental safeguards: capital requirements designed to ensure that banks can weather crises.