Banking and accounting rules need to synch up.
More-frequent reporting may lead to greater price efficiency, but it can also dissuade certain types of companies from making R&D investments.
End the requirement for quarterly reporting.
A lighter touch from regulators—in coordination with an early-warning accounting system going into effect in December 2019—could deliver fewer shocks to the economy.
Capital requirements that entirely prevent asset substitution should be implemented with caution.