A regulatory framework following the non-risk-weighted approach would be fraught with problems of its own. It sets banks problematic incentives to take greater risks. And so it was decided to improve regulatory standards within the Basel III framework.
Sabine Lautenschläger: Monetary policy – what's next? Statement by Ms Sabine Lautenschläger, Member of the Executive Board of the European Central Bank and Vice-Chair of the Supervisory Board of the European Central Bank, at the Eurofi Financial Forum, Tallinn, 15 September 2017. * * * Monetary policy has changed significantly since the financial crisis.