The scramble for capital
An uneven playing field
Tougher trading
"There are an awful lot of questions and not many answers," says Patrick Buxton, head of the capital management strategy group at Citi.
A whole series of questions have been raised that still need to be resolved, he adds. "Is capital for micro-prudential or macro-prudential supervision? Or is it both? What element of capital needs to cover pro-cyclicality? What element of capital needs to be counter-cyclical? What is the future role of the ratings agencies? What is the role of remuneration? What should a bank’s trading risk be? What do we want to do to address that in a regulatory mix?"
All of these questions lead to the biggest one that policymakers,...
