Second, recognising that solvency of banks can be threatened by illiquidity as much as by inadequate capital, work is currently under way to develop a global standard for liquidity risk regulation of cross-border banks, and strengthening information sharing on liquidity risk among home and host country supervisors. 31.
Other initiatives under way include promoting compensation structures that reflect the underlying risks taken over a longer term horizon and enhanced oversight of credit rating agencies, particularly where ratings are being used for aligning bank risk to regulatory capital requirements. BIS Review 152/2009  5  32.