The Board and the other banking agencies are in the midst of the first ten-year review cycle, and I am pleased to report that we are on track to complete this process by the 2006 deadline.
The ﬁnancial system has proven to be robust: Thanks to the G20 regulatory reforms following the global ﬁnancial crisis, the banking system is better capitalized, and there is greater regulatory ﬂexibility to reduce pro-cyclicality. Policy responses have been coordinated internationally. However, key challenges for debt sustainability and ﬁnancial stability may still lie ahead.