Adjustments are underway between the major currencies, driven by the decline in equity markets and the realignment of the US dollar. Emerging markets have also witnessed turbulence, largely due to country-specific factors, including concerns about debt dynamics and political uncertainties. The current phase of the banking cycle appears to be driven by the downturn in economic activity rather than financial distress.
This is why we put great store in the remedial programs that we ask of you and monitor energetically their implementation However, business models evolve, international regulatory standards develop, and responsive supervision is not static. The procedures and processes that are in place today may need to be revised so that they are relevant tomorrow.