If the green transition had happened earlier, it would have been easier to progress towards our climate goals and we would have reduced our exposure to the current energy shock and its inflationary consequences. The European economy would have been more resilient to the ongoing energy crisis.
With occasional continued modifications, the current risk-based capital regime should remain appropriate for most U.S. banking organizations for many years to come. It is also important for you to know that, as supervisors, we will not look upon institutions as having deficient risk-management systems simply because they choose to stay under the Basel I capital framework.