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You are conflating two things. Reserve requirements are not same as capital. And there is a modern capital requirement, as per Basel III, in effect since 2022.
by BrandonS113 4y ago
You are conflating two things. Reserve requirements are not same as capital. And there is a modern capital requirement, as per Basel III, in effect since 2022. Capital historically was calculated very differently.
- eru 4y ago> You are conflating two things. Reserve requirements are not same as capital. I know. I never wanted to imply otherwise. What made you think so? > And there is a modern capital requirement, as per Basel III, in effect since 2022. Capital historically was calculated very differently. Yes, the rules change all the time. So there's a modern incarnation of capital requirements. But capital requirements in general aren't new.