Monday, October 28, 2013

Is being consistent better than being right? Is the quest for consistency not just a cover up for mediocrity?

We read: “The members of the Financial Stability Board´s Regional Consultative Group for Europe were updated by the Basel Committee on Banking Supervision on the findings of the regulatory consistency assessment of risk-weighted assets for market risk and credit risk in banks’ portfolios, and shared national perspectives on regulatory consistency of risk weights.”

Of course we like consistency, but what is more important, that all these European countries are consistent in their assessment of risk-weighted assets for market risk and credit risk in banks’ portfolios, or that some in the group, could get it right, even if this meant acting inconsistently?

Has the biodiversity of opinions no longer any value? Is this quest for consistency not just a cover up for mediocrity?