Thus the United States and the United Kingdom – which currently have the greatest concentrations of capital markets activities – have a particular obligation to oversee the local activities of both domestic and foreign banks that could pose particular risks to financial stability and are likely to be especially difficult to observe for a home country supervisor less familiar with those markets.
We are conscious that a whole process of prudential re-adaptation is called for in this respect by both banks and regulators. I may add that we are well on course, fully aware that Basel II is more than a simple framework for fixing an amount of capital consistent with the specific risks taken by a bank.