As I already mentioned, there is a difficult coexistence of the name «inflation targeting» with the multiple goals (real and/or financial stability) that are alluded to and with the claim of total transparency and credibility. The problem gains practical importance when we ask: how far and how long a deviation from the inflation target will be allowed to accommodate other objectives?.
Also, the capital shortfall refers to the end of the transition period, which is nine years away. Most banks should be able to earn their way out of potential shortfalls. To sum up, Basel III preserves risk sensitivity in a sensible way.