These floors will limit the extent to which internal models can lower capital requirements relative to the standardised approach and therefore ensure that the level of capital across the banking system does not fall below a certain level. Second, the BCBS has recently  26  See EBA, Third interim report on the consistency of risk-weighted assets, 2013.
27  See Basel Committee, Regulatory consistency of risk-weighted assets in the banking book, July 2013. 28  Behn, M., Haselmann, R. and V. Vig, (2014), “The limits of model-based regulation”, SAFE Working Paper Series, No. 75.