Because no single capital measure can capture all possible sources of loss, U.S. banking regulation has for three decades required both a leverage ratio and a risk-based capital requirement. In responding to the crisis, we have applied a higher leverage ratio and stronger risk-based capital requirements, including a robust stress testing program to larger banks.
7  The risk-based capital regime that has been built since the crisis contains several distinct components: a minimum capital requirement, a buffer requirement, and a surcharge on systemically important banks. 9 Let me explain the rationale for each component.