A trio of U.S. bank regulators proposed raising capital by 16% to change how banks calculate risk and how much capital they must retain as a cushion.

The Fed, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency decided to release the over 1000-page proposal for public comment, which the banking industry has already slammed.

The sector warns that such a huge jump could force them to cut services, raise fees, or both.

Fed Chair Jerome Powell supports sending the measures out for discussion, but he swiftly listed many concerns with the plan, saying regulators have a “difficult balance” to strike.

“Congress and the American people rightly expect us to achieve an effective and efficient regulatory regime that keeps our financial system strong and protects our economy, while imposing no more burden than is necessary,” he said.

Powell has stated that Vice Chair for Supervision Michael Barr, who led the proposal, sets the Fed’s regulatory agenda.

In a consensus-driven agency, his cautious support is significant.

Several officials expressed interest in input on the concept, suggesting improvements.

“This is the peak of how onerous we estimate these capital requirements to be for regional and large banks.”

Changes in response to comments should moderate these proposals, though the impact will remain material for the big banks,” said TD Cowen analyst Jaret Seiberg in a research report.

After three major financial institutions failed in spring, the plan is the first in a series of measures to tighten bank oversight.

Barr said Thursday he would consider views on the proposal but stressed the need for strong capital.

“Neither regulators nor bank managers can anticipate all risks, or how risks may be amplified and propagated,” he said in prepared remarks.