Capital should be based on risk exposures, and the evolving risk modeling methodologies provide improved tools to better determine the appropriate level of capital. Let me add a point about the differences between minimum regulatory capital, as set out in Basel I, Basel II, or any supervisory model, and the level of capital that banks may choose to hold for business reasons.
We should not forget that many countries, including the poorest ones, have been implementing structural measures with great effort and commitment for a number of years. IDA is the largest concessionary aid fund in the world. Countries trust its advice and welcome its financial support which lays the foundation for sustained growth and fighting poverty.