The paper discusses the reform of capital regulation of banks in the wake of the financial crisis of 2007/2009. Whereas … the individual bank or for the system as a whole. Objections to substantial increases in capital requirements rest on … arguments that run counter to economic logic or are themselves evidence of moral hazard and a need for regulation …

We study the relative strengths and weaknesses of principles based and rules based systems of regulation. In the … make less dramatic changes, making principles based regulation less robust than rules based regulation. Firms prefer a …

of Twenty Finance Ministers and Central Bank Governors from the world's 20 major economies (G20), Basel III does not have …