Capital requirements

Good times end eventually. And it is inevitable that some new approach to banking will cause financial institutions to fall flat in a downturn.

Among the six biggest U.S. banks, Bank of America might deliver one of the steepest jumps in payouts. Wells Fargo is the wild card.

The regulatory relief legislation rolls back several stress test requirements for regional and midsize banks, putting more onus on financial institutions and their regulators to ensure banks are managing their risk appropriately.

There’s renewed focus on the relative importance that capital and liquidity should play in regulation, but the discussion misses another measure that should rank higher in bank evaluations.

Policymakers should spend more time focused on limiting risky activity through measures like the Volcker Rule than on demanding ever-higher levels of bank capital.

Commenters will have more time to weigh in on the plan, by the Fed and OCC, that has triggered divisions among the federal regulators.

Subordinated debt issuance, which took a back seat as bank stocks surged, could regain popularity as growth-minded banks become leery of market uncertainty.

The financial reform law may hinder growth modestly in the short term, but it should be judged by its impact on the economy years down the road.

As NCUA amended at 2014 regulation on capital planning and stress testing, the two-person committee also marked 24 months of operating with a vacant seat on the board, commending one another for a productive working relationship.

Two recent central bank proposals may exacerbate problems with the agency’s capital surcharge for big banks.