We are incorporating the results of this horizontal review in our current assessments of banks' overall capital adequacy, as well as using it to evaluate banks' readiness to meet the requirement in Pillar 2 of Basel II that banks develop their own internal process to assess overall capital adequacy, beyond regulatory capital measures.
Consolidated supervision program The supervisory activities just described are intended to address many of the risk management lapses seen over the past year, some of which pertain to shortcomings in firmwide risk identification and measurement. Consistent with our regular efforts to improve supervisory practices, we realize that our program of consolidated supervision could be enhanced and made more systematic.