A paper analyzing competitive effects in the residential mortgage market will be available later this spring, and once the U.S. agencies agree on a proposal regarding the treatment of credit cards, staff members can begin analyzing potential competitive effects of the proposal in that market, as well.
All four papers will then be re-evaluated early next year when new data become available from the agencies’ next quantitative impact study. If the evidence following these reviews and a public comment process suggests that implementation of bifurcated capital standards in this country may affect competition in certain markets, the proposals for Basel II may need to be reconsidered.