How these issues are resolved will obviously have an impact on the future composition of many banks’ balance sheets. E.g. we see now that the liquidity cover ratio (LCR) as it is designed, discourages interbank lending.   Other open questions relate to potential unintended consequences of the regulatory framework.
To what extent will the tougher requirements on regulated institutions cause risks and activities to flow into the shadow banking sector and what will be the implications for banks and for systemic risk?