Capital Regulation: The Road Ahead

It is a great pleasure for me to be here and to participate inthe discussion of the future of capital adequacy regulation.I would like to compliment the organizers of this conferenceon the programme they have set up, covering manyrelevant topics, and the range of experts they have beenable to bring together.In my address, as I am sure you would expect, Iwill approach the issues from a supervisory perspectiveand in my capacity as chairman of the Basle Committee.Most of the questions that have arisen and been discussedhere in the last two days are complicated, and many issueswill require careful review. So do not at this stage expectme to provide clear answers on specifics. I do hope to befairly explicit, however, on some of the more generalissues at stake, in particular on the level of capitaladequacy required for prudential purposes. In otherwords, my address today should be seen as part of theexploratory process that should precede any potentiallymajor undertaking.[...]