Quality of capital Let me now turn to the issue of the quality of capital. The Committee has been reviewing the key elements of Tier 1 capital and the importance of ensuring strong core capital. A strong, high quality capital base is critical for banks to be able to absorb losses and maintain lending during periods of severe economic and financial stress.
The Committee will continue to provide global leadership on what the key elements of a strong capital base should be, reflecting the lessons of recent developments. Such an effort will ensure that both prudential and competitive equity objectives are maintained in the future.