too big to fail ” regulations by the group of experts on the further development of the financial market strategy ( brunetti group of experts ), the federal council has instructed the federal department of finance to prepare legal adjustments, which primarily concern more stringent capital requirements. cf. media release of the federal council, 18 february 2015. for instance, international studies have revealed significant differences in rwa between banks using the model - based approach. these can only be partially explained by differences in the level of risk taken by the banks. cf., for example, basel committee on banking supervision, regulatory consistency assessment programme ( rcap ) – analysis of risk - weighted assets for market risks, january 2013 ; cf. also eba, interim results of the eba review of the consistency of risk - weighted assets, 26 february 2013 ; barclays, the dog that dug, 21 september 2012. studies at national level have also shown that model - based rwa are too low in some cases. cf. finma annual media conference, “ models and their limitations ”, 31 march 2015. bis central bankers ’ speeches to address this problem, regulatory initiatives have been launched at international and national level. at international level, the basel committee on banking supervision is fundamentally revising the standardised approach. the committee is also examining the introduction of a floor for internally modelled rwa based on this revised standardised approach. one important objective of the floor would be to ensure that capital requirements based on banks ’ internal models do not fall below a prudent level. at national level, finma – together with the big banks and with the support of the snb – has conducted a comparison between rwa calculated using the model - based and standardised approaches. the results of this comparison, in addition to the measures already taken by finma and those expected at the international level, will be taken into account by a working group led by the federal department of finance. this working group will draw up proposals and the associated legal adjustments for implementing the recommendations in the federal council ’ s ‘ too big to fail ’ evaluation report. alongside these regulatory initiatives, the snb still considers it necessary that the big banks increase transparency with regard to rwa. finma has now called on these banks to disclose the differences between calculations using the model - based and standardised approaches. such enhanced transparency is necessary to restore the credibility of modelbased rwa and to strengthen market discipline. the snb continues to hold the view that risk - weighted

- sustaining recovery in domestic demand is unlikely to gain momentum for some time, since production is expected to be virtually unchanged for the time being while downward pressures such as excessive labor input and debt persist. furthermore, the outlook for overseas economies warrants careful monitoring with more uncertain factors arising such as iraq - related developments and economic implications of the severe acute respiratory syndrome ( sars ). on the domestic side, careful monitoring is required of developments in stock prices and how they affect the financial system, corporate finance, and the economy. on the price front, import prices are rising, reflecting developments in prices of overseas commodities such as crude oil. domestic corporate goods prices have stopped declining on the whole with the rise in import prices and the improved supply - demand balance in materials industries, despite the this report is based on data and information available at the time of the bank of japan monetary policy meeting held on april 7 and 8, 2003. the bank ’ s view of recent economic and financial developments, determined by the policy board at the monetary policy meeting held on april 7 and 8, 2003 as the basis for monetary policy decisions. continued fall in machinery prices. meanwhile, consumer prices and corporate services prices have been declining gradually. looking at the conditions influencing price developments, the outlook for import prices is unclear at present because it largely depends on developments in crude oil prices. on the domestic side, the supply - demand balance in the macroeconomy, ongoing technological innovations in machinery, and the streamlining of distribution channels will continue to exert downward pressure on prices. in contrast, upward pressure is also at work, such as the effects of high crude oil prices to date and the improvement in the supply - demand balance in materials industries. of these two opposite pressures, the latter will be slightly stronger at the corporate transaction stage for the immediate future, and therefore, domestic corporate goods prices are projected to inch up. as for the outlook, consumer prices are expected to continue decreasing but the pace of year - on - year decline is expected to become somewhat slower, as medical costs are projected to rise from april due to public insurance reforms. as for the financial environment, the bank of japan provided further ample liquidity to secure financial market stability, following the commencement of military action against iraq by the united states and other nations ( march 20, japan standard time ). as a result, the outstanding balance of current accounts at the bank rose to 30. 9 trillion yen at the end of march. under these circumstances, the overnight call