While we acknowledge the differences between NCDs and deposits, both from a regulatory treatment point of view and, consequently, from a pricing point of view, the ‘hybrid’ approach to derive Jibar is recommended as a viable improvement for the current Jibar.
In addition, as I have mentioned, one of the key aspects of our supervisory approach in the United States is our increasing reliance on the evaluation and testing of banks’ own risk management systems. This aspect of our supervisory approach probably has the least relevance for developing countries that lack the fundamental factors I have just outlined.