Minimum regulatory capital is the lowest of the three capital “requirements,” and thus the degree to which it may or may not affect competition across banks is an important conceptual and practical issue involving, at bottom, the way the price of credit gets determined.
*** Fast-forwarding several centuries to today, the consensus seems to be that if the crisis that began in 2007 has taught us anything, it is that there was an extraordinary lack of common rules at the global level, in particular in the field of financial stability. In this regard, a concrete outcome has been the collective acknowledgement that the financial markets need rules.