Download or read book Reconsidering Bank Capital Regulation written by Connel Fullenkamp and published by International Monetary Fund. This book was released on 2014-09-15 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: Despite revisions to bank capital standards, fundamental shortcomings remain: the rules for setting capital requirements need to be simpler, and resolution should be an essential part of the capital requirement framework.We propose a new system of capital regulation that addresses these needs by making changes to all three pillars of bank regulation: only common equity should be recognized as capital for regulatory purposes, and risk weighting of assets should be abandoned; capital requirements should be assigned on an institution-by-institution basis according to a regulatory (s,S) approach developed in the paper; a standard for prompt, corrective action is incorporated into the (s,S) approach.