Fed's Bies on regulatory capital requirements

In the speech 'Linkages between Internal Capital Measures and Regulatory Capital Requirements' given on 6 December Susan Schmidt Bies of the Federal Reserve said Basel II provides a means for regulators to rely more on banks' internal estimates of risks--but only if those estimates meet certain supervisory standards.

"Our expectation is that Basel II will also promote further enhancements to risk management," Bies said.

"Accordingly, the Federal Reserve considers Basel II to be a worthwhile

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