Regulators focus on improving measures of risk exposures to determine minimum regulatory capital. That is, we are focused on setting a level of capital at individual banks that is sufficient for safety and soundness in the financial system. Successful individual financial institutions, on the other hand, generally strive for a higher level of capital to effectively implement their strategies.
This higher level of capital demonstrates financial strength to the market, which is reflected in their credit ratings and allows them to access funding and capital at attractive interest rates.