No two economic expansions are the same; each of the previous ones differed, and the present one has its own unique features. As a result, we cannot rely only on cyclical comparisons such as I have just presented, but they are a helpful part of any overall assessment.
The second part of the competitive equity concern is the belief by some regional and community banks that they will be placed at a competitive disadvantage with A-IRB banks because of the larger banks' lower regulatory capital charges on residential mortgages, loans to smaller businesses, and certain retail loans. The direct competitive impact on Basel II and Basel I banks is important.