For the Basel Committee, this also means looking at more than just the global average increase in capital requirements and focusing on a regional balance as well. The German representatives in Basel are not alone in this quest, but work in close cooperation with other negotiating parties. We are grateful to have the strong support of the ECB on this matter.
That is why I am very pleased that Danièle Nouy will be giving the Dinner Speech tonight. Specifically, we will be bringing the following points to the negotiations. 1. The supervisory LGD under F-IRBA needs to be reduced from 45% to 40%. 2. The scaling factor of 1.06, a remnant of the Basel II rules, should also be abolished. 3.