However, some observers fear that this is also detrimental to the real economy. They argue that the new rules are making it more expensive for banks to lend and are therefore concerned that the institutions will be forced to reduce their lending activities in the future. The Basel Committee was well aware of the impact that the new rules would have.
It was for this reason that the Committee also established transitional periods with the aim of rendering it easier for banks and savings banks to make the necessary adjustments. These apply to both the qualitative and the quantitative aspects of the new capital requirements.