I want to highlight four of its elements: capital, liquidity, risk management, and resolution planning. Capital is, of course, central to ensuring resiliency although, as I will explain shortly, the presence or absence of other regulatory requirements is relevant in setting minimum capital levels.
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.