To this end, it would be necessary to remove the priority accorded to the funds for recoveries in liquidation (the super-priority rule), which makes it difficult, and often impossible, to comply with the least cost criterion. * * * The unexpected increase in inflation recorded in the euro area in the last few months is largely the result of a supply-side shock.
We certainly hope that many upgrades made for Basel II are those that would have been made anyway. Conclusion These are challenging times both for banks and for bank supervisors. On the one hand, new technologies and markets afford us exciting opportunities to meaningfully strengthen the risk-measurement and -management capabilities of our financial institutions.