Based on the data of the introduction of Basel II in Germany in the aftermath of the financial crisis of 2007, the authors of the study have analyzed how the implementation of model-based regulation affect the stability of the financial sector. Hence, they investigated the development of default rates and interest rates. The authors suggest "that simpler rules may increase the efficacy of financial regulation".
Find out more in the IMFS Working Paper No. 82 "The Limits of Model-Based Regulation"