Naturally, as we seek to develop a common framework that will work for large complex banks globally, we recognize an inherent tension between our regulatory requirements and internal bank practice. We are working to strike the right balance to achieve our goals without making Basel II purely a compliance exercise and creating undue burden.
2  BIS Review 62/2006  Need for strong capital Basel II is intended to improve regulatory capital requirements, especially for large complex organizations, through greater risk sensitivity of regulatory capital and improved linkage to banks’ actual capital risk management.