To explain the reasons for this downward revision, I must begin by discussing the financial crises in the United States and Western Europe as well as the deceleration in overseas economies, which are major factors responsible for the deterioration in Japan's economic conditions.
BIS Review 110/2007  1  With its three pillars, Basel II provides a rigorous framework that ties the amount of capital that banks require to maintain with their specific risks, thus establishing an enterprise-wide risk management framework. Pillar I provides a range of approaches to calculate the capital charges for credit, market and operational risk.