Higher capital requirements make it more difficult to build up excessive balance sheet leverage and increase caution towards risky business models, as the owners' liability gains greater weight. Therefore, the debate represents an important step towards preventing the next crisis. However, that will not end or shorten the current crisis.
Although encouraging signs of recovery are emerging, the crisis is not yet over and it will take years to come back to previous levels of output. Rising unemployment, a scarcity of private capital and the pressure to deleverage being exerted by the markets and rating agencies are dampening business and earnings possibilities.