Part I The Elements of Bank Financial Supervision, 4 Basel III
- Basel 3 — Basel 2 — Leverage — Regulation of banks
4.01 One of the primary political responses to the crisis was to maintain that it was ‘caused’ by the banks. The logic of this position is examined in Chapter 2. However, the usefulness of the belief meant that it soon became an assumption rather than a contention, and even in the earliest G20 statements responding to the crash are to be found observations to the effect that banking supervision ‘needed to be tightened’. The difficulty which this posed is that even those who agreed that banks had ‘caused’ the crisis were unable to agree on which aspect of bank...