The key reforms of banking regulation since 2008 had three goals: limit risk incentives,
avoid bailouts and avoid spillover (contagion) effects. The first goal was served by stronger Basel III capital and liquidity norms that produced a more resilient banking sector. Bailout and contagion risks were supposed to be addressed by bail-in capital and new Pillar II powers for capital guidance.
Authors
- Pages
- 17
- Published in
- United Kingdom
