Each depositor insured to at least $250,000 per insured bank

Home > About FDIC > Board of Directors & Senior Executives >Thomas M. Hoenig - Capital Adequacy

Thomas M. Hoenig - Capital Adequacy

Capital standards must be simplified and strengthened to contain the impulse for excessive leverage and to provide a more effective backstop to absorb unexpected losses. Using a straightforward ratio of tangible equity capital to total assets is a more conservative, more credible method of assessing capital adequacy because it counts as the only capital only that can truly absorb losses.


March 2, 2015 Financial Supervision: Basic Principles presented to the Institute of International Bankers Annual Washington Conference; Washington, DC
June 2, 2014 Commercial Banking: One Industry? delivered at the North Carolina Bankers Association Convention Palm Beach, Florida
May 7, 2014 Can We End Financial Bailouts? presented to the Boston Economic Club Boston, Massachusetts
February 24, 2014 Presentation to the National Association for Business Economics, 30th Annual Economic Policy Conference; Arlington, Virginia
September 2013 Lehman Brothers: Looking Five Years Back and Ten Years Ahead Presented to the National Association of Corporate Directors, Texas TriCities Chapter Conference, Houston, Texas
April 9, 2013 Basel III Capital: A Well-Intended Illusion; remarks to IADI Research Conference. Basel, Switzerland
November 30, 2012 Financial Oversight: It's Time to Improve Outcomes to the AICPA/SIFMA FSA National Conference; New York, NY
September 14, 2012 Back to Basics: A Better Alternative to Basel Capital Rules; delivered to The American Banker Regulatory Symposium; Washington, D.C.
  Archived speeches delivered as President of the Federal Reserve Bank of Kansas City

Statements, Letters, Op-eds, and Other Material

March 23, 2015 Lending Through the Cycle (PDF) - Data on strong capital levels supporting lending
September 5, 2014 Global Capital Index - PDF (PDF Help)
Calculation explanation
Archived Versions:
4th Quarter 2013 (December 31, 2014)
2nd Quarter 2013 (June 30, 2013)
4th Quarter 2012 (December 31, 2012)
2nd Quarter 2012 (June 30, 2012)
April 8, 2014 Statement by Thomas M. Hoenig, Vice Chairman, Board of Directors, Federal Deposit Insurance Corporation on the Adoption of the Supplementary Leverage Ratio
November 26, 2013 Statement by FDIC Vice Chairman Hoenig on the Proposed Supplemental Leverage Ratio
"The supplemental leverage ratio should be adopted as proposed. The leverage ratio represents a minimum acceptable level of capital against total tangible assets and is the appropriate measure to judge the capital soundness of an institution. The discussion of unconventional monetary policy on excess reserves and its effect on the composition and risks affecting the balance sheet is a separate discussion."
August 19, 2013 Safe banks need not mean slow economic growth - PDF (PDF Help); Financial Times
July 23, 2013 Statement on the use of international accounting standards when computing the leverage ratio for systemically important financial institutions
July 9, 2013 Statement on Basel III Capital Interim Final Rule and Notice of Proposed Rulemaking
December 13, 2012 Get Basel III Right and Avoid Basel IV, Financial Times
June 12, 2012 Statement on Basel Capital Notices of Proposed Rulemaking



Last Updated 3/23/2015