The Basel II paper elaborates the main features of a rigorous process, which have to be in place in order to fulfil Principle 1 of Pillar 2. Namely they are •  Board and senior management oversight. The ultimate responsibility for the risk management processes and the internal capital adequacy assessment process is with the senior management.
Looking ahead, there is also more limited scope for fundamental innovation in the cash system compared with the scope for dynamic innovation in electronic payments. So this journey is in our national interest. 2. Functionality, Safety and Reliability I would now like to discuss three interrelated factors that will influence how quickly we undertake that journey.