Set bank capital too low and failures follow; too high and lending is choked. Lyndon Nelson traces how prudential regulation balances risk-sensitivity against complexity — from Basel 1 to "Strong and Simple" — and why the risks, like a dormant volcano, are forgotten but never gone.
https://www.abettermousetrap.blog/s/Prudential-Regulation-and-the-Art-of-Balance-2023-03-08.pdf