5 Following the global crisis, the BCBS moved to the Basel III agreement, which strengthens capital requirements, as opposed to Basel II, which tried to build primarily on measures of risk capital set by internal models developed by each individual bank.
Some basic beliefs: At the outset I still consider the Great Financial Crisis heaving at its origin excess built-up of leverage especially short term debt. We should however not condemn wholesale all debt carrying instruments. While we must tackle the stock of legacy debt, the flow of new credit to the economy should not be hampered as it fuels the economic recovery.