To restore growth and wealth generation we must get rid of dumb regulatory risk aversion.

Sir, Michael Heise writes: “Greater innovation and higher productivity remain the safest routes to restored growth and wealth generation. And this needs open markets, tax incentives for investment and a well-qualified workforce — not ever more fiscal spending and central bank cash injections.” "Monetary policy lacks the muscle to boost growth" August 22.

Absolutely, but a prerequisite for that to be achieved is getting rid of that toxic risk aversion present in the risk weighted capital requirements for banks and that are distorting the allocation of credit to the real economy.

Here is an aide memoire on what is wrong with these capital requirements.

@PerKurowski ©