Certainly.
As you indicated, there are a few elements to the new Basel III capital rules. First of all, let me just say that it's a very good agreement, with an appropriately lengthy transition period, reflecting the fact that it is a significant strengthening of the rules.
In terms of some of the specifics, as you mentioned, the levels of capital are higher. There is more emphasis on true capital--that is, capital that can actually truly bear losses, such as tangible common equity. There is a narrower set of deductions, strengthening the definitions, so that we are focusing on true capital.
There are also some other important elements. There's a limit on leverage. As you know, Canada has had a cap on leverage for some time. So we think this is a very positive development. There's also an additional buffer that institutions would build up in periods of excess credit growth that appear related to systemic risk, because of the increased likelihood that ultimately there will be a correction.
So those are some of the core elements.
Canadian banks are certainly well positioned. They came into this crisis with strong capital levels, and were able to raise further capital when needed. But Canadian banks will have to make some adjustments, particularly given the new definitions, and that's certainly something they have indicated they're very confident they can do.