The implementation of the Basel II Capital Framework in Australia is less than a year away. Already Basel II has impacted, in a positive way, on the risk management practices of many of Australia’s authorised deposit-taking institutions (ADIs). As the Basel II journey continues, so should those risk management practices continue to improve. This morning I will discuss some of the risk issues associated with Basel II and its implementation. I will also say a little about the impact of Basel II on the quantum of regulatory capital, not because I have something new to say (I don’t) but because I am sure that if I don’t that will be the first question I’ll be asked.