I. Risk assessment
Regulation of the financial sector should not be considered without risk. If the warnings from those in the financial sector itself are correct, then regulating even a slightly more stringent capital liquidity standard could freeze the operation of the financial sector (tier 1 risk) (Rucker, 2006: 4-8). The implementation of a more stringent capital liquidity requirement furthermore potentially faces practical barriers in enacting such a policy (tier 2 risk) (Mintrom, 2012: 289-290).
