We have been evaluating additional criteria that may provide for greater regulatory differentiation across large banks, and the recent legislation is consistent with the goals of that initiative. Specifically, the legislation recognizes that large banks have a variety of business models and risk profiles; supervision should be flexible enough to incorporate this heterogeneity.
Many of the above relate to the legal problems in our financial ecological environment. For instance, looking at the bank-enterprise relationship, the Chinese enterprises have high financial leverages with low self-owned capital and relying mainly on bank lending. Can banks completely rely on external information or have to resort to internal information to some degree?