Recent events provide ample evidence that underestimating the potential for concurrent losses in multiple risk areas can put pressure on capital levels. Pillar 3 plays an important role in providing greater information on banks' risk profiles and their ability to manage them.
Consumer and business spending One of the more striking aspects of this recession is the continued weakness in consumer spending. While there were modest increases last year, spending decelerated notably over the first half of the year. Partly this reflects the effect of higher oil prices we saw earlier in the year.