US banks adjust capital ratios in response to Basel III reforms.
Banks in the US changed how they manage their money in response to new rules called Basel III. Small banks didn't really change, but medium-sized banks adjusted their money to make sure they had enough. This happened before the new rules were even official. Both small and medium banks reacted to the rules about mortgage loans, even though they didn't expect those rules. This shows that banks can change how they handle money based on new regulations, even before they are enforced.