This is striking given the high international rankings for the quality of our institutions, control of corruption, ease of doing business, and according to the World Bank, the highest per capita endowment of renewable resources in the world. So why is our per capita income so far below the OECD median? Partly it’s due to our geographic location and small economic size.
That’s why smaller institutions which are not internationally active should be subject to less complex rules. And that’s why the US and the EU have begun to reduce operationally burdensome rules for such institutions – a path that we are pursuing further, within the Basel Committee as well as in national implementation. However, we should not take this too far.