dynamic sector risk-weight adjustment approach. It concludes with some important lessons for regulation of the finance sector … the new capital and liquidity requirements under Basel III reforms, arguing that, like its predecessors, Basel III is … fundamentally flawed as a way of designing macroprudential regulation of the finance sector. In contrast, the Dodd-Frank Act has …

case that there were four primary failures contributing to the crisis: excessive risk-taking in the financial sector due to … mispriced government guarantees; regulatory focus on individual institution risk rather than systemic risk; opacity of positions … regulation put in place then was successful in addressing market failures, but how, over time, especially around the resolutions …