Basel II should establish a more coherent relationship between regulatory measures of capital adequacy and day-to-day risk-focused supervision of banks, enabling examiners to better evaluate whether banks are holding prudent levels of capital given their risk profiles. For similar reasons, U.S. supervisors support the recent Basel/IOSCO revisions to the 1996 Market Risk Amendment (MRA).
Welcome to the Annual Meetings of the IMF/World Bank Group, and in particular, to this BOJ/CEMLA seminar on regional financial cooperation, which is one of the most relevant and pressing issues in our increasingly inter-connected world.