First, relative to what we have today, Basel II is endeavoring to reduce cyclical reserving and write-offs that traditionally have come with the late recognition of excess risk taken  BIS Review 30/2002  3  earlier.
Second, the supervisory leg of Basel II is being structured to supplement market pressures in urging banks to build capital considerably over minimum levels in expansions as a buffer that can be drawn down in adversity and still maintain adequate capital.