We do this by assessing the risk behaviors of those in the financial market, looking at how they interact with one another, identifying the channels through which they interact and, appraising how the outcomes at the level of the overall system can be very different from the simple sum of the parts.
Thus, the U.S. banking agencies have proposed that those banks not operating under Basel II advanced approaches would remain under the current U.S. regulatory capital rules. An important factor in our decision to retain the current capital regime for those entities that are neither large nor significant global competitors is the scale and nature of the existing capital regime in the United States.