Under this approach, the risk-weight assigned to a particular credit position would be based on the internal risk rating assigned by the bank holding that instrument. Regulatory staffs in the United States and other countries are currently attempting to work out the basic architecture of such an approach.
Since their economies are so interconnected with the rest of Europe and indeed, with the rest of the world, they are threatening to plunge the entire world into a recession if their economic  BIS central bankers’ speeches  1  conditions deteriorate further.