I covered a number of subjects at the previous hearing which I thought were important for an understanding of how the economy was going to perform over coming years. I also mentioned a couple of outcomes we expected for 1997. It is those which will probably be of the most immediate interest.
Some of these banks may be sophisticated institutions that exhibit sound risk management but do not quite meet the criteria to be core banks. The agencies recognize that such institutions should be afforded an alternative for more-risk-sensitive capital requirements, but one that is not as complex as the advanced approaches.