We should avoid making unwarranted statements about points in time too far into the future over which we have little true visibility. It also means that policy decisions not only should be based on the most likely outcome predicted by models, but should also take into account the balance of risks.
For example, we are prepared to explore the possibility of allowing U.S. subsidiaries of foreign banks to use conservative estimates of LGD and EAD for a finite transitional period, when data are not yet available for parts of some portfolios. If adopted, this approach would apply equally to fully domestic U.S. banks adopting A-IRB.