Namely, that complex regulation with multiple safety nets – such as the risk-weighted approaches and the debt ratio – are a good alternative to simple rules. At this juncture, Schimanski would probably conclude that while the supervisor’s attack was perhaps a little heavy-handed, it wasn’t deadly.
And, what’s more, the supervisor’s selfinterest in having complex rules is very limited, so this scarcely cuts the mustard as a motive for murder. Inspector Schimanski would therefore have to carry out further investigations. To this end, let’s take a look at the advantages of complex banking regulation. 4.