*  *  *  Good afternoon. I would like to thank you for the opportunity to join you at this impressive conference. You asked me to provide some thoughts about Basel II, particularly its application in the United States. Before doing that, I would like to inform you of our progress in developing the new accord.
Moreover, technology does not in any way alter the fundamental tasks and risks that justify the existence of both banks and banking supervisors. The financial system needs monetary policy intermediaries, as well as agents that enable essential services such as lending, deposits and payments. The existence of banks is therefore intrinsically linked to the mechanics of our economic and financial system.