Conclusion The U.S. banking agencies have reached an important milestone in adopting the final rule for Basel II. Our focus on the fundamentals of improving risk management consistent with safety and soundness, and on international consistency, has been key to achieving this success. Obviously, however, effective implementation of Basel II is as important as, if not more important than, the rulemaking process.
2  BIS central bankers’ speeches  To reach an appropriate assessment, it is also essential to know whether we are currently still in a situation in which markets can successfully exercise their disciplinary powers – or whether we already have moved to a full-blown systemic crisis in which the threat of self-fulfilling downward spirals calls for massive intervention.