R. Alton Gilbert, Courtenay C. Stone, and Michael E. Trebing describe the new standards for capital adequacy recently adopted by the federal regulators of commercial banks and measure the adjustments by banks that will be necessary to meet the new standards. The authors discover that, for the banking industry as a whole, meeting the new minimum capital requirements will not require major adjustments. Less than 3 percent of all U.S. commercial banks fail to meet these capital standards; the increase in bank capital necessary to meet these standards is about one percent of existing bank capital. A large share of the increase in capital will have to be raised by a few of the nation’s relatively large banks. Gilbert, Stone, and Trebing also examine the effects of the 9 percent total capital standard that has been discussed recently by some government officials. If this standard were to be adopted in the near future, it would require sizeable adjustments by the banking industry. Currently, about half of all U.S. commercial banks would fail to meet the 9 percent standard; total capital in the U.S. banking industry would have to increase by about 29 percent to meet such a standard.