While the general global outlook seems to be a bit more positive, we appear to have moved into a new phase, which is no less risky or uncertain than previous phases. And even if things don’t get worse, they will take a long time to get better. How has the crisis mutated?
By increasing standardization, these reforms aim to increase transparency and public confidence in risk-weighted assets while also reducing complexity. As we speak, the staffs of the U.S. federal banking agencies are diligently working on a Basel III endgame proposal that should be issued for public comment soon.