6  See e.g. Acharya, Schnabl, and Suarez (2010): “Securitization without risk transfer”. 7  See e.g. Haldane (2010): “The $ billion question”. 8  See e.g. Richardson (2012): “Why the Volcker Rule is a useful tool for managing systemic risk”. BIS central bankers’ speeches  3  First, the Basel minimum capital requirements were based on stand-alone risks of a bank.
For instance, the Basel rules entail no direct measure of an asset’s exposure to systemic risk, such as home and real estate loans’ exposure to the business cycle. Second, liquidity risks resulting from short-term money market funding were not part of the Basel minimum capital requirements.