The analysis shows that higher capital reduces the severity of the crises as better capitalised banks tend to provide 25 5 / 11  BIS central bankers' speeches  more credit.25 Some authors argue that the introduction of the concepts of Total Loss-Absorbable Capacity (TLAC) and Minimum Requirements for Eligible Liabilities (MREL) for the purpose of bank resolution could implicate a lower capital ratio to start with.26 However, a more recent FED paper, considering the potential effect of TLAC still reaches an optimal range of capital ratio between 13 and 25%.27 Considering these studies, there is no justification to weaken the LR standard, nor is there rationale for not restricting the use of internal models for credit risk, to be finalised before the year-end.
The many years of accumulated experience of the parent bank puts the Botswana subsidiary at an advantage from which to leverage the managerial, operational and technical expertise. The subsidiary bank should also have at its disposal the technological infrastructure and financial resources of the parent bank.