At present, a most pressing concern with regard to money supply is that corporate credit growth is too sluggish rather than too strong. However, if there were any signs of excessive lending growth in future, the ECB has the means to absorb bank liquidity rapidly, if necessary.
Thus, the proposal in this country has no implications for the desirability and benefit of applying Basel II to smaller banks in other jurisdictions that might benefit significantly from the Standardized Basel II approach. Indeed, the U.S. experience proves the value of enhanced supervision and greater transparency even for the smallest institution.