The secret of good bank regulation is to “lean against the prevailing wind”; force banks to build up capital and reserves in good times so they can get through bad times.

一个健康的银行的运营准则就是“不要趋之若鹜同流合污”；在经济形势好的时期强行银行积聚资本和储备资金以备不时只需。

youdao

Capital adequacy is the minimum level of capital required, by regulation, to be held by a bank.

资本充足是要求银行持有的最低资本限度。

youdao

The explanation must be that bank capital regulation is based on book values of capital, not market values.

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Indeed the distinction between capital controls and sensible bank regulation can become blurred.

ECONOMIST: Time to turn off the tap?

It would be very silly indeed bank regulation that required the same capital provisioning for both of them.

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