Since then, they have increased by nearly a full percentage point. To add some perspective to these developments, the corresponding figure during the “taper tantrum” episode of 2013 amounted to some 130 basis points between May and September of that year.
Regulators, on the other hand, will have to develop these requirements before seeing the actual results of these models and robust databases. The process we have for vetting Basel II in the United States is probably similar to those followed in many other countries. We are putting forward proposals and seeking comment from the industry, our legislature, and other interested parties.