I have no doubt that this statement remains valid today, although the risk management challenges facing banks have certainly evolved.
For example, our experiences with the market disruptions that followed the Russian default and the Asian debt crisis, and the growing importance of financial markets in the risk management processes of both financial and nonfinancial firms have helped to accentuate the importance of market liquidity. Another significant adjustment in our supervisory emphasis is our ongoing effort to revise the Basel Capital Accord.