On this and other topics, the AIG is recommending that a certain degree of flexibility be applied, always taking into account both the material effect of these differences in terms of capital and the regulatory burden for the entities. This implies accepting, where appropriate, one single calculation for specific subsidiaries, resolving the question of the group calculation through aggregation rather than consolidation. However, this flexibility must be limited, strict and responsible; it must provide the smoothest and least costly transition possible, but it should not give rise to arbitrage problems. As I have said, this is a hot topic, and it is not easy, but given the advisability of the principle of having the entire group use a single approach in, I repeat, both subsidiaries and the parent, while ensuring that the overall risk culture and systems remain adapted to  BIS Review 45/2006  3  the sensitivities of each market, it is also advisable to ask host countries to make additional efforts to study and allow, to the extent possible, the application of this principle. This is just one example of the questions on which the AIG is actively engaged. As regards the distribution of tasks and the necessary coordination between home and host supervisors on the efficient implementation of the revised Framework, the AIG, together with the CPLG - the Core Principles Liaison Group, which includes 16 non-member countries as well as the IMF and the World Bank - has prepared a paper on information sharing between supervisors.
Once the phase of theoretical debate and standards drafting had been completed, the Committee’s activities, in particular through its Accord Implementation Group (AIG), focused on implementing the Framework. The time has therefore come to confront this practical reality, with all its difficulties and problems, through a dialogue with the industry and the global supervisory community. This is a major task, given that the aim is to strengthen banking systems and the international financial system, rendering them more robust, more stable, and thus more capable of contributing effectively to the growth and stability of our economies. Despite the importance of Basel II, the proposed agenda also shows us that this is not the only topic currently of interest to the supervisory community. Tomorrow, we will be discussing one of the Committee’s key projects, which, I am convinced, affects all these supervisors gathered here today. I am referring to the Basel Core Principles. With these introductory words, I would like to provide a general overview of the Committee’s work in these areas. First, I will focus on the revision of the Basel Core Principles, before moving on to talk about the implementation of the revised Framework. I will be referring to the necessary collaboration and coordination between supervisors, and will briefly touch on the other implementation-specific issues that the AIG is currently working on. Revision of the Basel Core Principles Looking at recent press headlines, one could easily conclude that the Committee’s activities over the last few years have been almost exclusively focused on Basel II.