All of this is very close to what the Bundesbank has proposed and supported in the past. When assessing potential areas for simplifications, we must weigh the benefits of regulation – that is, ensuring financial stability – against the burden it creates for the private sector.
As a rule of thumb, we can say that any rules that are dispensable for effective supervision are up for debate. Conversely, however, this also means that a lot of rules are not up for debate. Most importantly, there can be no concessions in terms of risk-based capital ratios, the leverage ratio or the shortterm liquidity ratio. And the list goes on.