· Joachim Nagel Wiki · Deutsche Bundesbank WikiBanking regulation - as complex as necessary, as simple as possible
Read full speech on bis.org ↗ContextOpening speech at the Bundesbank's thirteenth regulatory conference in Frankfurt; the Bundesbank helps supervise German banks and is pushing for simpler but robust bank rules.
Why it mattersThe Bundesbank calls for simpler bank rules without weakening safety, keeping the leverage ratio as a backstop.
Problems raised
- Banking rules have become very complex.
- Crisis measures trigger at inconsistent points.
- Complexity can hide risks.
Solutions proposed
- Prefer simple, appropriate solutions.
- Keep the leverage ratio as a backstop.
- Align crisis triggers.