--- title: "Meaning & Key Takeaway of: Higher capital requirements increase bank…" description: "\"Higher capital requirements increase bank costs, and at least some of those costs will be passed along to bank customers and shareholders. But in the l..." image: "https://sms4smile.com/quotes/i/328/jerome-powell-7353_bank_higher-capital-requirements-increase-ban_393705.jpg" --- # Higher capital requirements increase bank costs, and at… ![“Higher capital requirements increase bank costs, and at least some of those costs will be passed along to bank customers and shareholders. But in the longer term, stronger prudential requirements for large banking firms will produce more sustainable credit availability and economic growth.” quote by Jerome Powell](https://sms4smile.com/quotes/i/328/jerome-powell-7353_bank_higher-capital-requirements-increase-ban_393705.jpg) [Download](https://sms4smile.com/quotes/i/328/jerome-powell-7353_bank_higher-capital-requirements-increase-ban_393705.jpg) [Open image](https://sms4smile.com/quotes/i/328/jerome-powell-7353_bank_higher-capital-requirements-increase-ban_393705.jpg) > “Higher capital requirements increase bank costs, and at least some of those costs will be passed along to bank customers and shareholders. But in the longer term, stronger prudential requirements for large banking firms will produce more sustainable credit availability and economic growth.” [Jerome Powell](https://sms4smile.com/quotes/author/jerome-powell/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Stricter bank capital rules raise short‑term costs but aim to ensure long‑term credit stability and growth. **In simple terms:** Higher capital rules cost more now, but support future stability. Key Takeaway Support prudent regulation for sustainable finance. Themes banking regulation financial stability economic growth Mood informative balanced Type policy economic When to use this quote - investment decisions - policy debates - corporate budgeting Key Concepts risk management macro‑economics Questions to Reflect On - How should banks balance safety and lending? - What are the trade‑offs of tighter regulation? A Different Perspective Higher costs may limit credit access short‑term. ★ ★ ★ ★ ★ No ratings yet [Credit](https://sms4smile.com/quotes/about/credit/) [Customer](https://sms4smile.com/quotes/about/customer/) [Economic growth](https://sms4smile.com/quotes/about/economic-growth/) [Growth](https://sms4smile.com/quotes/about/growth/) ## Related quotes > [I mean there is no capital requirements to it or anything of the sort. 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