On the comparison of capital requirements for global systemically important banks

Basel III introduced a comprehensive package of capital reforms to bolster the resilience of the global banking system. While the standard supports regulatory convergence across jurisdictions by establishing a common minimum set of requirements for internationally active banks, it also gives national authorities flexibility to exceed the minimum standards. Heterogeneous applications of Basel III across jurisdictions have fuelled perceptions of an uneven playing field and have become central to current debates on how regulation may influence banks’ competitiveness.