Stephen Cecchetti, Jeremy Kress, Kermit L. Schoenholtz
Since the 1970s, banking regulators have worked to set minimum standards for internationally active banks. The latest agreement, Basel III, was introduced following the 2008 financial crisis, but only partially adopted by the US in 2013. This column discusses the final set of rules (‘Basel endgame’) and their potential implications for the US economy and financial system. It argues that the US should, at a minimum, implement international standards in a capital-neutral manner to preserve decades of global regulatory cooperation. Raising capital requirements is also highly desirable but can be left for future consideration.
Πηγή: Voxeu