For if it were to bind, this would put us in a regime of completely un-risk-weighted capital requirements, where the effective capital charge for holding short-term Treasury securities would be the same as that for holding, say, risky corporate debt securities or loans.
Recently, U.S. regulators have issued a proposed rulemaking that seeks to raise the Basel III supplementary leverage ratio requirement to 5 percent for the largest U.S. bank holding companies, and to 6 percent for their affiliated depository institutions.