It should be emphasized that the goal of overcoming deflation will be achieved through such continuous, comprehensive efforts by firms, financial institutions, the government, and the Bank operating within their respective roles.
The higher the penetration of rating agencies and the more confidence there is in the workings of the rating market then the more attractive the approaches become relative to the new Accord. The internal ratings based approached relies on the banks’ skills and the banks’ judgments but requires more input from the organization.