But we are aiming to reduce disclosure requirements, simplify reporting, and exempt some institutions from recovery and resolution planning, among other things. So what’s the global state of play in matters of banking regulation? One major step forward – the finalisation of Basel III – has already been taken.
Yet, they need to be co-ordinated, which is a non-trivial task given that financial and business cycles can be de-synchronised. For these reasons, as I have already highlighted, appropriate macroprudential policy instruments must be at the disposal of central banks.