As the scale and complexity of their activities grew, the banks needed to find better and more efficient ways to understand, manage, and control their risk-taking activities; to promote and respond to the emergence of new markets, such as those for securitized assets; and to make greater use of available technology and financial theory in measuring and managing their risks.
Before the agencies issued the ANPR, numerous changes in the proposed Basel II Accord had already been made in light of earlier comments. Reflecting the comments received on the ANPR, the Basel Committee agreed to extend the period for reaching an agreement in principle until mid-2004 to permit more time for revisions of the proposal to be formulated.