The article discusses how banks determine the amount of money they need to keep on hand to stay financially stable. It compares two types of capital: regulatory capital set by authorities, and economic capital calculated by banks themselves. The current system doesn't consider the creditworthiness of borrowers, leading banks to keep riskier assets. The new system aims to align these two types of capital, but some studies suggest they will still be influenced by different factors. The paper reviews existing research on this topic to understand the differences and similarities between regulatory and economic capital.