Do you want your bank regulators have a total lack of confidence in your banks?

Markets, banks, bankers they do all one way or another perceive risk of default of borrowers and adjust to these by means of interest rates, size of exposures and other terms. 

And so when bank regulators order banks to also adjust to the same perceived risk in their capital requirements then they are implicitly considering the banks to be absolutely blind. 

Frankly, is that the type of regulators you want? 

Don´t you think that if a regulator believes in that kind of nonsense, he is a regulator that can be too easily be taken for a ride?