We should remember that the notion that flexible exchange rates are an acceptable way to manage the international economy has risen to ascendency only in the last 3 decades or so, a period I believe will be seen by history as a dark age of economics.
The third pillar, market discipline, by enhancing transparency, strengthens the ability of marketplace participants to reward well-managed and capitalised banks As intended by the Committee, the overall capital requirements of banks are not expected to fall significantly.