The proposal is the last part of the Basel Committee's package of capital adequacy requirements initiated after the financial crisis. The new set of rules has been a long time coming. But now we've nearly reached the conclusion for the time being. With the first parts of the capital requirements package, the requirements were generally tightened. That was pleasing.
Some critics have argued that because of our determined policy action, the shoring up of bank capital and the consolidation of fiscal positions have been delayed. My answer is simple. Our measures gave breathing space from markets driven by panic, which were forcing the economy into a position where inappropriately high interest rates would make default a self-fulfilling prophecy. Adjustment would have been impossible.