For example, when many countries are said to be overbanked, it seems to indicate that capital and other resources are excessively allocated to the financial service industry, particularly the banking sector. With the new guideline that more accurately calculates the required capital corresponding to the risk profile of banks, will a similar conclusion hold?
And, if examined from the viewpoint of economic capital, will there be any change in the conclusion? If the economy is considered overbanked even according to the new guideline, we will see the reallocation of resources, including capital, both in and out of the financial system. Through what kind of process will such reallocation of resources be realized?