Because the cohesion of the euro area depends on all countries prospering, what happens within each one is not just a national interest, it is a collective interest. Every member of the euro area has a vital interest in ensuring that its partners are meeting the membership requirements – and not just at the point of entry, but continuously.
Indeed, during the qualification process, we expect to have several additional opportunities to evaluate institutions’ risk-management processes, models, and estimates--and provide feedback to the institutions on their progress. So QIS4, an assessment conducted at one point in time, should not be considered a complete forecast of institutions’ future Basel II capabilities or the framework’s ultimate effects.