Our aim is to agree a capital regime that ensures a very high level of confidence in the solvency of the banking system, while avoiding unnecessary economic inefficiency.
In pursuing this objective, the Capital Review will look at the three key components of the regulatory capital regime: The definition of eligible capital instruments The measurement of risk, in particular the risk weights attached to credit exposures The minimum capital ratios and buffers These three factors are interdependent and the links between them must be carefully considered.