We will have to continue with the objective of restricting short-term flows, though the means of doing it could be refined from time to time in consonance with domestic and, to some extent, global developments. Policies Relating to Transparency and Standards A major area of concern has been lack of transparency in regard to macroeconomic and financial health.
In a general sense, Basel II represents an improved and broadly comparable way to look at risk taking across organizations and over time. It is composed of the now-familiar three pillars: Pillar 1, minimum capital requirements; Pillar 2, supervisory review; and Pillar 3, market discipline.