That's a very big topic, and it's a really good question. I thank you for that.
First of all, it's important to remember what capital is there for. Banks have to have capital, because capital supports lending, but capital also allows you to manage your risk. It acts as a shock absorber. Mr. Adler is absolutely right. Going into the financial crisis, we were capitalized well in advance of what international standards required. That was partly the role of OSFI, but it was partly a role investors and the street required of us.
One of the most important things about putting Basel III in place is the importance of international consistency. It is important that we have around the world a strong commitment to putting the rules in place, and to putting them in place in a consistent manner. We know that this is what Governor Carney is focused on in the FSB.
We see, unfortunately, some slippage. In the United States of America, many of the banks have not even put in Basel II yet, let alone Basel III. We notice that. We see, I think, probably some slippage in Europe. We think consistency of application is very, very important. We call for that.
I think the big thing with Basel III is that we all recognize the importance of prudential standards. It's one of the things we live by. Nobody should underestimate, however, what an enormous exercise this is for the industry in this country.