Eleven large US regional banks would have fallen short of their end-2022 regulatory requirements in the absence of a Trump-era paper-loss waiver the Biden administration suggested may be reversed in the wake of the collapse of Silicon Valley Bank and Signature Bank.

A Risk Quantum analysis of 28 lenders shows that preventing them from filtering unrealised losses from capital would shrink Common Equity Tier 1 (CET1) capital ratios by an average of 256 basis points compared with Q4 2022 levels.