10 Second, peer-to-peer lending platforms, by contrast, act as intermediaries to connect borrowers with lenders and to assist investors in identifying and purchasing loans that meet their investment criteria. These lenders can be individuals, banks, or institutional investors.
And it would include exposures that now – in my view, unjustifiably so– have a 0% risk weighting, such as certain exposures to governments. A leverage ratio used as a backstop to these risk models would also achieve this, while still being easy to calculate and understand.