The most important deadline is the presentation to the G20 Summit in Seoul next November of the new rules reforming the Basel II Accord. The financial industry contends that the regulatory reform could impede the recovery. But the application of the new rules will be gradual and will not begin until the recovery has gathered force.
The changeover to the new definition of banks’ capital will be long enough to render its effects on banks’ market value and on credit negligible during the transition. It is important that the difficulties of the moment not lead to a loosening of the long-term objectives, which must be kept firm. The experience of the crisis also influences the design of monetary policies.