To account for this heterogeneity, we will probably combine an absolute threshold for total assets with a relative one that takes the size of the national GDP into account. This quantitative threshold should be supplemented by additional criteria that prevent institutions with riskier business models from benefiting from simplified rules. For example, banks that qualify must not use internal models.
The housing sector is strong, and business investment is increasing at a solid pace. In some industries, nearterm supply constraints are restraining activity. As with overall economic activity, conditions in the labor market have continued to improve, although the pace has been uneven.