However, to ensure smooth transition, sufficient time up to 2004 is given for banks to make appropriate provisions. This is a forward looking measure, and a change to meet global standards. Similarly, changes have been proposed in the measurement of capital for exposure purposes and in the level of exposure limit itself. These changes will also be applicable from a future date.
Moreover, evidence has been found that in the US the adjustment to asymmetric shocks is faster than in the euro area, largely because of the latter's lower mobility of capital and labour. In particular, labour mobility, which is one of the most important adjustment mechanisms in the US, is often found to be much lower in the euro area.