If the outlook for the banks is to be improved, the process of overhauling Basel III also needs to be brought to a swift close this year. First, the revised framework will provide banks with greater stability. Much has already been achieved in this regard, as I have already pointed out.
Second, the regulatory debate should not become a source of uncertainty in and of itself. Financial institutions need to be able to adapt to the new regulatory regime, and they require a reliable basis for planning to make this happen. This will also quash market uncertainty over regulatory requirements, as the financial strains associated with regulatory change are then easier to calculate. 4.