Points of convergence with banking supervision  There are strong parallels between these drivers and trends and those underlying Basel II. As I noted on the previous slide, the IASB’s work on disclosure of financial instruments - first in IAS 32, but especially in its new ED 7 proposals - has been inspired by concepts and guidance first proposed in Basel’s Pillar 3.
Second, one of Basel II’s starting points has been the need to develop more refined approaches to the measurement of risks. This means allowing banks to make greater use of their own risk modelling approaches where supervisors are satisfied that these models are sound and will be used responsibly.