And just last week, the Executive Board of the ECB decided to initiate the procedure for the ECB to become a collaborating member of Centre for Latin American Monetary Studies (CEMLA). Over the past few years, ECB officials have already participated in CEMLA Governors’ meetings on a regular basis.
In contrast to the treatment for credit risk, Basel II allows both the consolidated and the individual legal entities to benefit fully from the risk reduction associated with group-wide diversification.