Strengthened Prudential Oversight of Capital, Liquidity and Risk Management (i)  Capital requirements: Specific proposals will be issued in 2008 to: •  Raise Basel II capital requirements for certain complex structured credit products;  •  Introduce additional capital charges for default and event risk in the trading books of banks and securities firms;  •  Strengthen the capital treatment of liquidity facilities to off-balance sheet conduits.
Changes will be implemented over time to avoid exacerbating short-term stress. (ii)  Liquidity: Supervisory guidance will be issued by July 2008 for the supervision and management of liquidity risks.