The global financial crisis that first emerged in 2007 demonstrated that core regulatory capital requirements at banks around the world were deficient in terms of both their quality and quantity, prompting regulators to draft new rules forcing banks to shore up their levels of capital in a bid to prevent a similar crisis in the future.

While this represents an important move in the right direction, Daniel Tarullo, a member of the boad of governors of the Federal Reserve, believes there are a