Such a structure forces supervisors to view the internal capital-allocation process consistently with bank managers. It  2  BIS Review 85/2001  may well be that the supervisors' role in the oversight of economic capital determination and the markets' review of banks' risk exposure and management may be more important than the establishment of regulatory capital minimums. II.
Globally, the financial crisis has left scars of lost output and jobs, declines in household wealth, impaired financial systems and large fiscal deficits. With households, financial firms and governments all deleveraging, the global recovery is expected to be modest and unemployment to come down only gradually. In most advanced countries the recovery remains dependent on monetary and fiscal stimulus.