Many banks already hold better-quality capital that significantly exceeds the new regulatory requirements. Yet the sector is still some way from recovering trust. Market pressures - not just regulations - have prompted banks to be more conservative with their balance sheets. Low price-to-book ratios of banks, a persistently wide cross-currency basis and continued deleveraging are signs that creditors and investors are now much more ready to sanction banks that are deemed not well capitalised. Therefore, dialling back the post-crisis regulatory reforms is not a convincing strategy to help banks overcome these pressures. Rather, banks can help themselves regain market participants' trust - and better serve the real economy - by cleaning up balance sheets and strengthening capital.