Paul Tucker has addressed how Basel III deals with some, but not all, of the problems in its predecessors. He said the big gap, which is now plugged, was lack of accord on liquidity standards. Previous flaws, now addressed, were to apply a zero weight to 364-day lines of credit and to have a regime that took no account of the risk of swings in liquidity premia. The main flaw was that the previous Basel accords allowed instruments that could not absorb losses as a going concern to be used as regulatory capital. He moved on to discuss what requirements might be placed on Global Systemically Important Financial Institutions (G-SIFIs) in terms of loss-absorption and possible instruments and techniques that might be used. Finally he looked at countercyclical capital buffers as the first stage towards creating a macroprudential regime. He said the UK experience has led to BoE calling for a Twin Peaks regulatory system in the UK and explained why BoE thought it desirable to combine the Prudential Regulatory Authority with the central bank. (Source: Paul Tucker Paper on Regulatory Reforms and Remaining Challenges)