IN the wake of the global financial crisis, there have been numerous proposals to reform the oversight of the global financial system—from the Group of 20 advanced and emerging economies (G-20) and international standards setters. Nearly all of the proposed reforms focus on strengthening bank-centered regulations, such as capital, liquidity, loan loss provisioning, or compensation arrangements. These enhancements, particularly higher capital and liquidity buffers, should make the global financial system better able to absorb and provide more tangible backstops to curb excessive risk-taking at banks.