In light of the significantly higher risk-based capital rules for GSIBs under Basel III, imposing a stricter leverage requirement on these firms is appropriate to help ensure that the leverage ratio remains a relevant backstop for these firms.
Therefore, a key “quick-win” here would be to build a common evidence base to ensure that the various initiatives are based on a consistent set of price, performance and liquidity data. Such a database could help ensure that regulations reflect the real risks of ABSs, taking into account the full set of information available on ABS performance across jurisdictions.