In light of the collapse of Silicon Valley Bank and concerns regarding the stability of the banking sector, this page looks at bank capitalization and lending sentiment. On the left, we show Bank Tier 1 capital as a share of risk-weighted assets. While this metric may be exaggerated due to the high level of unrealized losses in hold-to-maturity portfolios, overall bank capitalization still looks healthy and has improved drastically since 2008. On the right, we show the percentage of banks tightening lending standards. Rising interest rates and increased recession fears have caused banks to tighten lending standards for commercial and industrial loans to large firms.