For example, there is still a significant gap between Ireland’s employment rate and that of Scandinavian countries and the US; the employment rate in the US is about 71 per cent compared with 66 per cent for Ireland.
Yet there is no obligation to use a model; instead, institutions can also opt for a more straightforward standardised approach. What is more, large and systemically important institutions are asked to meet additional requirements. Global systemically important institutions, for instance, need to set aside more capital in the shape of a separate capital buffer.