That is why we supported moving ahead with the draft NPR, which was modified to address concerns identified in the fourth quantitative impact study, known as QIS4, and includes additional safeguards to ensure strong capital levels during the transition to Basel II.
We will remain vigilant in monitoring and assessing Basel II’s impact on individual and aggregate minimum regulatory capital levels on an ongoing basis. As an extra degree of precaution, the U.S. banking agencies also decided to delay for a year the start of the parallel-run period.