One objective of Basel II is to speed adoption of these new techniques and to promote the further evolution of risk measurement and management by harnessing them to the regulatory process. Increased heterogeneity and concentration in banking Market pressures have led to consolidation in banking around the world.
Apparently, the uncertainties associated with the euro area received more attention than those affecting the US economy. Exchange rates do not, however, consistently move in only one direction. Cyclical developments may revive the diversification argument as a strategic consideration. Moreover, empirical studies support the view that the composition of foreign exchange reserves to some extent reflects the structure of external trade and financial ties.