In my comments today, I would like to discuss the apparent motivation for managers to create global financial institutions, which provides the background for a convergence of regulatory standards around the world. I would also like to mention briefly the approach that the Federal Reserve is taking with respect to foreign banks.
Finally, I would like to focus on the emerging global regulatory standards, mainly the efforts of the Basel Committee on Banking Supervision to revise risk-based capital standards. Global consolidation of financial institutions The need for sound and consistent policies and procedures throughout the world has become more important as our financial markets and financial institutions have become larger, more complex, and more tightly integrated.