Banks capital adequacy ratios were set globally, and, once set, remained fixed.

Similarly, banks would have incentives to game capital adequacy requirements by manipulating how capital and assets are defined.

None of the major banks met even the Basel 1 standards for capital adequacy.

There seems to be little appetite for proposals to vary capital adequacy requirements counter cyclically.

Moreover, the use of mechanistic rules to determine capital adequacy has also inadvertently encouraged systemic imprudence.

The group calls their version of contingent capital regulatory hybrid securities.

Since high risk premiums on government bonds endanger the capital adequacy of banks, half a solution is not enough.

The recent agreement by the Basel Committee on Banking Supervision on a new capital adequacy framework is another positive step.

Capital adequacy and liquidity risks should be assessed on a group level, rather than country by country how capital and risks are divided between countries is less important.

The Basel III agreement on capital adequacy and other recent reforms still have not ring fenced trade financing from these potential shocks.

Similarly, banks would have incentives to game capital adequacy requirements by manipulating how capital and assets are defined. Indeed, investment banks like Goldman Sachs and Barclays Capital are already inventing new types of securities to reduce the capital cost of holding risky assets.

First, sovereign bonds held by banks are treated as risk free assets under EU rules for calculating banks solvency and capital adequacy levels.

Capital adequacy was a matter of judgment examiners would figure out how large a buffer a bank ought to have, taking into account its specific risks.

Many eurozone banks have made far less progress in strengthening their capital adequacy and liquidity than have American and British banks since the financial crisis erupted.

China s decision to execute the head of its drug regulatory agency has rekindled international debate about capital punishment.

This is rarely possible in the developing world, which suffers from outmoded regulatory structures and underdeveloped capital markets.

Where this is not possible, it means stringently restricting what they can do and imposing higher taxes and capital adequacy requirements, thereby helping level the playing field.

More fundamentally, creating the regulatory institutions conducive to ownership separation may be impossible unless a society's political orientation towards labor and capital is more favorable to capital.

Better repayment prospects and lower regulatory capital costs then fuel the asset based financing of further acquisition of assets.

Haldane rightly complained that banking regulation has evolved from a small number of very specific guidelines to mind numbingly complicated statistical algorithms for measuring risk and capital adequacy.

Absent international coordination, the opportunities for destructive regulatory competition will defeat regulatory reform.

Regulatory philosophies are converging, too.

The Harm of Regulatory Disharmony

Keeping those loans on the books would have meant that a bank would have had to incur a large capital adequacy provision and monitor the loans performance, at a cost to itself.

Furthermore, by raising regulatory capital costs in boom times, some counterweight to the pro cyclical bias intrinsic to financial systems would be introduced.

Current ultra low interest rates may be scaring people about the adequacy of future income.

Current ultra low interest rates may be scaring people about the adequacy of future income.

I came to realize that the political answer to this crisis must encompass more than improved regulatory regimes, risk management strategies, and capital requirements.

But Silicon Valley's history indicates that top universities, flexible labor and capital markets, and limited regulatory obstacles to entrepreneurship all help attract high tech companies.

Fourth, regulatory structures will need to be rebuilt, and this will require a global effort. Absent international coordination, the opportunities for destructive regulatory competition will defeat regulatory reform.

The key is to reflect on six kinds of capital goods business capital, infrastructure, human capital, intellectual capital, natural capital, and social capital.

No chance of a regulatory revolution here.

A second structural adjustment concerns regulatory reform.

establishment of strong administrative and regulatory institutions.

But there are indications that the process is being driven by regulatory change, and in some cases by regulatory protectionism.

Regulatory encouragement may be helpful, perhaps even necessary.

Discussion must start by agreeing on regulatory principles .

Financial innovation will proceed along with regulatory arbitrage.

That means breaking up too important to fail (or too complex to fix) institutions. Where this is not possible, it means stringently restricting what they can do and imposing higher taxes and capital adequacy requirements, thereby helping level the playing field.

Strict uniformity of regulatory practices may not be necessary.

How many financial regulatory agencies does a country need?

Won't this mean a regulatory race to the bottom?''

Capital Shrugged

Damming Capital

Capital flight