Projecting ahead many years, better risk management may mean that troubled banks will be far fewer than they have been historically. Ideally, the three pillars will work in an integrated way to strengthen banking systems. Nonetheless, during the transition to a working Basel II, we may have to lean on capital regulation more than we hope to in the long run.
In navigating that transition, our overarching goal should be to advance the practice of risk management and encourage its wider adoption. And we all should accept that a lot of work remains both for banks and for supervisors.