Regarding the latter, we do not believe that New Zealand’s relatively vanilla banking system warrants a high degree of complexity in its capital regime. We are leaning towards simplifying both the allowable capital instruments and the methods for measuring risk, though we are in the consultative phase and far from making any decisions.
It is important to note that the Basel Committee is in the process of reviewing the public's comments on the proposal and there are still a myriad of important issues and details to address and work out before it can be implemented.