Article: Defending Deliberation on Basel II.

The painstaking process of revising international bank capital requirements under the regime known as Basel II has been extended yet again. The long-awaited U.S. proposal will be available in the first quarter next year for implementation in 2008, the nation's principal banking regulators said on Sept. 30. In a speech four days before that at the Institute of International Bankers in Washington, D.C., Federal Reserve Board Governor Susan Schmidt Bies explained that Basel II needs to reflect the modern complexity of financial institutions, markets, cross-border regulatory realities and advanced risk management practices. Following are excerpts of her remarks.

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