The guidance also sets out an indicative template containing the type of information we think we will request from firms following a loss, and also expectations of firms with approved internal models. We note that this is an area where the Industry itself is keen to ensure that it is well prepared and we welcome working with it on this topic. None of us will have a crystal ball to plan perfectly for such an event, and as decision makers we will only be able to make final judgements on how to respond at the time, once we have the facts as best as we can gather them. However, we still think there is more that can be done to think through how firms would go about gathering initial loss information, what information their boards are likely to need to see to inform their response, and some of the practical challenges which might arise for firms. Capital and model drift Given the challenging market conditions I have referred to earlier, and the uncertainties I have just discussed, it is all the more important that firms hold adequate and appropriate capital against the risks they face. As you will also be well aware, your and our work in the run up to January this year included significant work on internal models, and it would be unsurprising if there was not some collective sigh of relief within the industry after January given the work involved to get to that point.
We have no convincing answer to why Swedish consumers are less willing to use card payments than are their Nordic neighbours. One possible explanation is that card payments are, or are just considered to be, more costly, more complicated or more risky, in Sweden than elsewhere, by consumers or by terminal keepers. I will come back to this issue later. 2. Swedish consumers use debit cards rather than credit cards (fig. 2). Concerning preferences between debit and credit cards, clearly, Swedish card users favour debit cards, both in terms of value and volumes of transaction. In the year 2001, the number of debit card transactions amounted to just above 80 per cent of the total. Charge cards dominate the remaining 20 per cent. Credit cards with revolving credit arrangements do not seem to appeal to Swedes. In this respect, Swedish consumers' preferences are in line with those of consumers in the other Nordic countries and with those of continental Europeans. On the other hand, consumers in Anglo-Saxon countries seem to demand pure credit cards to a larger extent. Cultural factors may account for the different preferences between credit and debit card products. At least in Sweden, consuming out of credit is still considered to be somewhat irresponsible. In the old days of bank regulation, banks were not supposed to give credit for consumption purposes since available credit recourses should be channelled into productive investments. 3. The use of checks is negligible (fig. 3).