The concept of these three mutually reinforcing pillars has been central to the Basel II effort. Scope of application in the United States The U.S. supervisory agencies will propose that most banking organizations in this country remain under the existing Basel I-type capital rules and would continue to have no explicit capital charge for operational risk.
The open market desk can offset this effect by draining reserves from the system. But the amounts that banks choose to borrow at the discount window can be difficult to predict, complicating the management of the federal funds rate, especially when borrowings are large.