The big question is not, in fact, what more demanding capital standards will do to economic growth. The question is: what will economic growth, or lack of it, do to banks’ capital positions? It is noteworthy in this context that the phase-in for the Basel III capital standards extends until 2019.
We may not always agree with the specific form of the global and regional changes but, perhaps, we can agree on the principles for which change is being espoused. Borrowing from the website of the Financial Stability Board, we continuously need to build resilient financial institutions, make markets safer, instill more effective supervision and institutionalize more effective resolution regimes.