That is, banks meeting either the foreign exposure criterion or the asset size criterion would be required to adopt the advanced versions of Basel II, although most banks meeting one criterion also meet the other.
Ten U.S. banks meet the proposed criteria to be core banks and thus would be required, under our proposal, to adopt A-IRB and AMA to measure their credit and operational risks, respectively. As they grow, other banks could very well meet the criteria and thus shift into the core group in the years ahead.