Based on those reviews and banker responses, we then must develop examination practices, not to mention retrain and develop staff. And of course the regulators must finish the proposal. We must carefully review your comments, evaluations, and suggestions for improvements to the Bank for International Settlements’ consultative papers, and then make the necessary modifications.
The proposals in several areas – such as credit cards and commercial mortgage finance – still require fleshing out. Basel II as a framework and a concept is nearly finished, but its application will be in a constant state of flux – from the inception onward – as both banks and supervisors improve their procedures and the applications of those procedures.