This work resulted in the adoption of more-stringent regulatory capital standards for trading activities and securitization exposures in the summer of 2009, as well as the agreement last fall on the major elements of the new Basel III framework for globally active banks.
Consistent with the macroprudential approach, the Basel III framework requires the largest, most globally active banks to hold more, higher-quality capital, reflecting the greater systemic risk associated with financial distress at the largest institutions. Conclusion The financial crisis demonstrated clearly that supervisory and regulatory practices must consider overall financial stability as well as the safety and soundness of individual firms.