The U.S. agencies have issued an advance notice of proposed rulemaking discussing possible changes to enhance the risk sensitivity of U.S. Basel I rules and to mitigate potential competitive distortions that might be created by introducing Basel II. We are now in the process of reviewing the comments and working on a draft notice of proposed rulemaking.
We are mindful that amendments to Basel I should not be too complex or too burdensome for the large number of banks to which the revised rules will apply. With regard to both Basel II proposals and proposed Basel I amendments, we understand the need for full transparency.