However, as noted earlier, the focus of capital adequacy is not on favourable or benign economic conditions, or on the "expected" losses that occur as a normal part of banking business those matters should be addressed through provisioning. Rather, the focus is on unexpected loss associated with severe downturns in the economy's performance.
The other possibility is to work as it is only a transitory good time but the real underlying developments are about to be in place on a more permanent basis. As policy makers we can not afford to fall in the first one. Thank you. BIS Review 82/2008  3