Banks moving to Basel II We have an entirely different view for our largest and most complicated banking organizations, especially those with significant operations abroad. Among the important objectives of both Basel I and the proposed Basel II is to promote competitive consistency of capital requirements for banks that compete directly in global markets.
Another important objective has been to encourage the largest banking organizations of the world to continue to incorporate into their operations the most sophisticated techniques for the measurement and management of risk. As I have noted, these entities use financial instruments and procedures that are not adequately captured by the Basel I paradigm.