The council also facilitates coordination and information sharing among member agencies. By breaking down the silos that in the past sometimes discouraged agencies from looking beyond their specific responsibilities, the council should help identify and eliminate gaps and weaknesses within the regulatory structure.
* When the regulatory requirement is lower than the economic capital requirement, the bank may choose to hold capital above the regulatory requirement but below the economic requirement; in this case, the bank’s nominally high capital ratio may mask the true nature of its risk position.