Both the modifications of the proposals in CP3 and the changes in U.S. supervisory views, as evidenced by the commercial real estate proposal, testify to the willingness of the agencies, even at this late stage of the process, to entertain new ideas and to change previous views when warranted.
Summary The existing capital regime must be replaced for the large, internationally active banks whose operations have outgrown the simple paradigm of Basel I and whose scale requires improved riskmanagement and supervisory techniques to minimize the risk of disruptions to world financial markets.