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"Meeting the proper, nationally agreed standards of capital defence is demanding, and complying with them is expensive," O'Brien said.
Basle 2 (which sets minimum standards of capital adequacy, but is not legally binding) is meant to apply from January 2004.
Japan is seriously discussing nationalising the banks so as to break out of its current trap, in which the attempt to maintain Basle standards of capital adequacy while bank equity falls prevents the needed expansion of credit.
That throws differences in regulatory structure into much sharper relief.The regulators have responded in several different ways, most directly by drawing up the Basle rules on minimum standards of capital adequacy.
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Behind the scenes such a test will probably require banks to meet a given, but undisclosed, standard of capital adequacy.
The minimum amount of equity (the gold standard of capital) that they will have to hold will be set at 10%.
The increase is much larger than it appears because under the new rules banks must hold at least 7% in equity, the gold standard of capital.
Yet bit by bit the main chapters of the financial rule-book are being written.The most recent bit of progress was an agreement in Basel on June 25th to make the most important global banks hold an extra 1-2.5 1-2.5%uity, the gofd standard of capital.
Even by the standards of a capital that has seen impeachment and scandals in recent years, the drama surrounding the firing of a wartime commander was palpable.
In Brixton, as in other inner city areas that, by the standards of the capital, have historically been cheap to live in, soaring house prices and rents are making it unaffordable to those on incomes too high to entitle them to social housing, but too low to buy or rent privately.
As was standard for capital ships of the period, she carried a pair of 21 inches torpedo tubes, submerged in her hull on the broadside.
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