In order to achieve these objectives, the Maastricht Treaty established a clear allocation of responsibilities, reflecting the fact that assigning policy instruments primarily to one single policy objective and making individual policy-makers responsible for one single policy instrument ensures a high level of effectiveness and accountability.
Does that kill risk sensitivity? No, it does not. Obviously, there is still room for banks to apply individual risk weights and to benefit from lower capital requirements for classic, low-risk banking business. And more than that: the effective floor might even be lower than 72.5%. This is due to the fact that many banks apply the standardised approaches to at least some exposures.