Patinkin’s money, interest, and prices (first edition, 1956; second edition, 1965)6  In discussing Patinkin’s work, I need to mention that I was his research assistant when he visited MIT in about 1967-8, and that I was an admirer of his work and of his reputation as the founder of modern Israeli economics, and that later I became his friend, albeit a junior among friends.
If we were to de-link capital requirements from risks and, therefore, potential losses, we would have to deal with unhealthy consequences. In a crisis there would not be sufficient capital to cover increasing risks and losses, as we would incentivise weak banks to take on high risks in pursuit of high returns.