In addition, the opportunity was taken to explicitly analyze new types of risks – market risks – which had already been introduced in 1998 and operational risks. Quantitative impact studies in most jurisdictions have tended to show that the more sophisticated the system of credit risk assessment, the less capital is needed.
But it was also the same difficulties that allowed us to confirm.. that our collective reform efforts have put our financial system in better shape. Indeed the irony of financial markets is that crises invariably occur despite the best intentions; yet, it is in facing the next challenge in relative strength that we can truly say we have learned from the past.