Part 5/13:
He underscores the importance of bank regulation—particularly Basel III and the upcoming adjustments like the supplementary leverage ratio—that influence bank lending capacity. Regulatory measures implemented after the 2008 financial crisis, such as the Dodd-Frank Act and Basel accords, initially constricted bank lending by increasing capital requirements. Hanky advocates for a reassessment of these regulations, emphasizing that excessive regulation can hinder the banks’ ability to support economic activity.