As you can see, the FDIC is committed to reducing burdens in the examination process. From the '80s, we learned that there are no substitutes for regular, on-site examinations and strong internal controls. This has been highlighted recently by the Daiwa situation. Because of the critical importance of internal controls, our examiners are making sure that weaknesses found in external or internal audits are being addressed and corrected. Another area we closely review during examinations is management.
Many foreign banks use management from the home country on a rotational basis.
We know that moving new managers in and out of the bank may be good training, but it may pose a potential problem for the continuity and consistency of the bank's U.S. operations. That's why FDIC examiners will continue to pay attention to how effectively the bank's home office monitors its U.S. operations, and how well the U.S. managers are performing. And finally, in our overall review of newly chartered foreign institutions, we try to determine whether managers have a good understanding of the U.S. rules and regulations that apply to them. With our new international branch in place, the FDIC is proud to be expanding our representation on the Basle Committee. Additionally, we have been working closely with the Basle Committee on issues related to electronic money and banking.