Because new capital rules generally have lower weights on securities than loans,
There is the possibility that:

Question

Quizplus · Accepted Answer

New capital rules that assign lower weights to securities than to loans can lead to banks adjusting their asset portfolios in favor of securities over loans. This can curtail bank credit (A), potentially lead to savings not being channeled to their most productive uses (B), and diminish allocational efficiency within the banking system (C), as funds may not be directed to the investments that yield the highest returns.

Because New Capital Rules Generally Have Lower Weights on Securities