So let me return to where I began on this topic: figuring out the right level of capital requires one to be humble and skeptical. Components of Bank Capital Requirements Let’s turn to the design of capital requirements. U.S. capital rules contain many individual elements, including risk-based requirements, leverage standards, stress testing, and long-term debt requirements for the largest banks. (2008).
Equally, our manifest dedication to be active in the money markets when required to ensure their orderly functioning can contribute to instilling confidence and dealing with stress in financial markets.