“The global regulatory framework failed to prevent the build-up of risk in the financial system in the years leading up to the recent financial crisis. The sources of this failure were manifold, including insufficient capital and liquidity requirements for banking firms; inadequate and fragmented supervision and regulation of bank and non-bank financial firms that posed a threat to the stability of the financial system; and lack of oversight more generally over the non-bank financial sector. In this policy statement, the Department of the Treasury (Treasury) sets forth the core principles that should shape a new international capital accord to better protect the safety and soundness of individual banking firms and the stability of the global financial system and economy.”