Rather than having to meet just one capital ratio, they now will have to surpass several minimum requirements: there are, first, the improved risk-weighted capital ratio; second, two new liquidity requirements have to be met – a short-term Liquidity Coverage Ratio as well as a longerterm maturity mismatch ratio; third, the upcoming Leverage Ratio; fourth, macro-prudential buffers; and, last but not least, besides better capital also subordinated debt requirements.
After all, it is not impossible that countries in the process of catching up make greater productivity gains than hitherto, not only in the tradable goods sector but also in the non-tradable goods sector, because, for instance, they are pursuing a systematic policy of opening up and deregulating markets. That, too, would qualify the Balassa-Samuelson effect.