Restricting trade by imposing tariffs, quotas, or other barriers is exactly the wrong thing to do. Such solutions might temporarily slow job loss in affected industries, but the benefits would be outweighed, typically many times over, by the costs, which would include higher prices for consumers and increased costs (and thus reduced competitiveness) for U.S. firms.
Basel III therefore aligns the degree of risk sensitivity with the extent to which it is possible to measure and model risks. Second, there are some more conservative haircuts on collateral and some input floors. These input floors lie beneath the parameters for “probability of default” and “loss given default”. And there will be floors beneath the “exposure at default” calculation as well.