While I agree that any banking regulation may set in motion some form of risk transfer across sectors, I believe that the new framework takes a step forward in making the financial system more stable. Let me provide two examples of how the new measures aim at preventing banks from simply transferring their risk to the unregulated sectors.
First, banks may try to unload part of their risk via off-balance sheet constructs. But the new regulation makes it harder to do so. Both the liquidity coverage ratio and the net stable funding ratio take into account the potential impact of off-balance sheet exposures on banks’ liquidity conditions.