Important advances in the measurement and management of credit risk have been developed that community bankers should probably consider for their own use in the coming years. There are no magic bullets here, but community bankers may find that these advanced techniques provide useful tools and concepts that can reinforce existing disciplines in the credit management process.
3.2  Procyclicality  In addition to the measures that have already been taken, a number of quite fundamental aspects of the Basel II framework have been subject to review, some of which are also under discussion at this conference. However, most of these aspects concern hitherto uncharted fields of regulation. For that reason, further research is needed to calibrate them adequately.