These externalities can be significant– we estimate the potential cost of a serious financial crisis to be between 10 and 20 percent of GDP. 1  1  Reserve Bank of New Zealand (2012) “Regulatory impact assessment of Basel III capital requirements in New Zealand” available online at: http://www.rbnz.govt.nz/regulation_and_supervision/banks/policy/4932427.pdf.
BIS central bankers’ speeches  1  The international expansion of regulation The concerted effort of the major economies to bolster the global banking regulatory regime post-GFC has been coordinated within the G20 and associated bodies – specifically the Basel Committee on banking supervision (BCBS) and the Financial Stability Board (FSB).