I continue to think the analogy of the Twister game as a means for banks to face the myriad of capital, balance sheet, leverage and other constraints now being imposted upon banks. One foot here, a hand there, its all symbolic of what we want banks to do - meet ratios of various sorts but also lend at the same time. Thankfully, banks have raised capital since the end of the stage one of the crisis but the need for more cushion continues. The EBA announced in mid September that average CET1 ratios of Group 1 (large) European banks is 11.4% while the average LR for the same group would be 4.2%, comfortably above the minimums for 2019 implementation (see https://www.eba.europa.eu/-/eba-publishes-results-of-the-basel-iii-monitoring-exercise-as-of-of-31-december-2014), which for a certain group of banks means a total short-fall of about E20 billion.
This short fall pales the shortfall during 2011 which reached over $400 billion at one point, so real progress has been made and obviously valuations have helped here. However regulators for internationally active banks continue to aim for higher standards for certain players including DB and Barclays by 2019, when the rules come into effect, according to the IFR. Next up are the liquidity rules that come into effect by early 2018 such as the LCR (meant to measure how much liquidity is present within a bank if liquidity where to dry up) and the NSFR. The game of Twister continues...
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