Andrew Haldane, executive director, financial stability, Bank of England, London
Basel II was founded on three pillars. Pillar I defined the regulatory rules. That pillar collapsed under the weight of the crisis before the plaster had even set. Basel III is important in re-establishing the foundations: better quality liquidity and capital, and more of it. As importantly, and for the first time in their history, regulatory rules and tools will have an explicitly macro-prudential focus.