I’ll make no bones about it: a level of capitalisation that just meets the minimum supervisory requirements would fall far short of what is needed, in my view. I believe it was the UK economist Charles Goodhart who told the following tale to illustrate the dangers of minimalist compliance.
All these measures will be phased in during the next three years according to a well designed plan. By the decision of the State Council, we shall build a modern enterprise system, a modern financial and regulatory system within a time framework of three years.