This requires--and it is essential to our vision--that both supervisors and banks focus on the same positions, controls, and objectives. In the process, not only would other LCBOs be required to improve their risk-management, but, in addition, a system would be established that can evolve naturally as risk management practices themselves evolve.
For the most part, these new quantitative techniques are designed to address risk at LCBOs. They involve highly detailed and comprehensive management information systems. Such systems are cost effective for LCBOs, but they simply do not apply to the vast majority of banks in this country or, for that matter, to smaller and regional banks any place in the world.