Indeed, many factors other than minimum regulatory capital requirements - including domestic and international tax policies, economies of scale and scope, risk-management skills, and the ability to innovate - also affect competition and profitability. On balance, the Federal Reserve believes that an appropriately conservative approach to capital adequacy serves the United States' interest in maintaining the safety, soundness, and resiliency of our banking system.
However, we also recognize the impact that differences among countries can have and that it is worthwhile to minimize them whenever possible. As Chairman Bernanke noted earlier this fall, before issuing a final rule we intend to review all international differences to assess whether the benefits of rules specific to the United States outweigh the costs.