But there is work internationally to generate the tools and policies needed, to promote coherence in implementation and to conduct the monitoring that is required. Let me speak to some of these. One central lesson of this crisis is that the system entered it with too little capital, far too small liquidity buffers, and a capital and valuation regime with significant pro-cyclical consequences.
Much work is underway on bank capital and liquidity that will address these issues. The Basel Committee proposed last year changes that by end 2010 will expand Basel II risk capture and very significantly increase trading book capital requirements. And the Committee’s much strengthened liquidity guidelines are in the process of being implemented nationally.