As you know, following a successful four-quarter parallel run, a banking organization would have to progress through three transitional periods  BIS Review 59/2008  3  – each lasting at least one year – before being able to fully implement Basel II. A banking organization would need approval from its primary federal supervisor to move into each of the three transition periods.
Of course, we recognize the substantial work that bankers have undertaken over the past several years to prepare themselves for Basel II, and we think that preparation will pay off.