Regulatory Alerts2022-05-17
Capital review - A monkey on our back
Financial Policy issued this memorandum to the Financial Stability Oversight Committee to highlight the growing resource strain and philosophical misalignment caused by the expansion of approval-based regulation. The document argues that the shift towards complex Basel frameworks and intrusive supervisory approvals has created unsustainable operational burdens that may exceed the Reserve Bank's capacity. It proposes that the Committee consider a stocktake of these policies to ensure they remain consistent with a light-handed regulatory philosophy and available supervisory resources.
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