The “Collins amendment” in Dodd-Frank provided a safeguard against declines in minimum capital requirements in a capital regime based on bank internal modeling. The so-called Basel 2.5 agreement strengthened the market risk capital requirements of Basel II. Basel III upgraded the quality of regulatory capital, increased the quantity of minimum capital requirements, created a capital conservation buffer, and introduced an international leverage ratio requirement.
However, adequate investment in education is also needed to face the uncertainty that surrounds the jobs and the skills that will matter in the future. The current pace of technological change requires workers to “learn to learn” and to continuously update their skills.