Capital requirements should be based on the worst-case situation, so that they can withstand a catastrophic event like what occurred in 2008. Granted, it's possible that even bigger losses could have happened then in 2008, but thanks that did not fall prey to the poor lending practices in 2008 would no longer have the right incentives to remain fiscally prudent. There's nothing bad about having strong capital requirements. It's being penny-wise rather than pound-foolish.