At the same time, ICT technology has also enabled firms to enhance efficiencies of so-called middle-management functions, resulting in the flattening of corporate organizations. The confluence of these developments with the integration of emerging markets into the market-based economic system has reduced the costs of doing business worldwide, and enhanced competition in the global marketplace.
In October 2005, the agencies issued an ANPR for Basel IA, which discussed possible changes to increase the risk sensitivity of the U.S. Basel I rules and to mitigate competitive distortions that might be created by introducing Basel II. We have reviewed comments on the ANPR and are working on a notice of proposed rulemaking, which we hope to have out very soon.