In this regard, countries around the world are in the process of migrating to the Basel II capital standard. In its current form, the standard provides a menu of approaches from simple to advanced to assess credit, market and operational risks and to calibrate the capital requirement to the assessed risk.
A key challenge for the Bank will be to ensure that the introduction of new financial products and new ways of delivering financial products, which will be made possible by technological innovations and which offer immense benefits to customers, can be achieved in a manner that is consistent with our key prudential objectives.