-term oriented, with high implicit capital, and low risk (thanks to the law of large numbers). Trading is transactions …-based: scalable, shortterm, capital constrained, and with the ability to generate risk from concentrated positions. When a bank … engages in trading, it can use its 'spare' capital to profitablity expand the scale of trading. However, there are two …

remain. To mitigate risks, banks should continue to build more robust capital and liquidity buffers, and enhance further the …

Despite revisions to bank capital standards, fundamental shortcomings remain: the rules for setting capital … requirements need to be simpler, and resolution should be an essential part of the capital requirement framework.We propose a new … system of capital regulation that addresses these needs by making changes to all three pillars of bank regulation: only …