That is, although the current standard was structured on the basis of credit risk alone, its level was set higher than warranted for just credit risk, in effect incorporating a "buffer" that could be used to cover "other risks."
Since the 1990s until now, the price variability of a stock has been better explained by the company’s industry than its country. Transatlantic ties are less visible in today’s global financial system than in the past. Good examples are foreign exchange dealing and portfolio investment.