This was the impetus for deciding to delay issuance of our next round of proposals for Basel II. The agencies' reaction to the QIS4 results should signal how seriously we are taking the Basel II effort and how we are striving to implement it correctly. The results from QIS4 show the continued benefit of conducting periodic quantitative impact studies.
They serve as a milestone, helping us evaluate progress as we move to Basel II. We now must determine the reasons for the results from QIS4. Were there limits to the QIS4 exercise? Is there a need for adjustments to the Basel framework itself?