BoE’s Woods envisages radically simplified capital regime
Prudential regulation head sketches simplified Basel III alternative
The Bank of England’s Sam Woods outlined a radically simpler version of Basel III on April 27, comparing it with the innovative but often impractical ‘concept cars’ designed by car manufacturers.
Woods’s concept would do away with the many varieties of capital buffer under Basel III and replace them with a single buffer designed to reflect macro-prudential and micro-prudential considerations. Even so, he said even a simplified regime would need both risk-based capital and a leverage ratio.
The
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