Similarly, our annual capital plan review is a  6  BIS central bankers’ speeches  forward-looking exercise that, in estimating losses and reduced revenues that would follow an adverse economic scenario, may result in requiring banks to maintain more capital than would a static, backward-looking snapshot of minimum capital levels.
The second step towards more effective and efficient cross-border supervision concerns the decision-making process in colleges of supervisors. Whereas decision-making in existing examples of colleges is entirely on a consensus basis, I believe that the role of the lead supervisor or consolidated supervisor should be strengthened in order to avoid stalemates.