Of course, banks don't all have to make the same choice with respect to capital levels, but they should pay the appropriate price in the market for lower levels of capital relative to risk. At any rate, it is important that an appropriate level of disclosure requirements be included in pillar 1 to facilitate such market discipline.
The pillar 3 disclosure recommendations themselves are very far reaching. But at this point many of them are recommendations, not requirements. In addition, we recognize that we still have more work to do in fashioning a more disciplined and prioritized set of disclosure requirements, one that balances the cost of compliance against the benefits of disclosure.