In between these landmark documents, there has been a vast array of official guidance on risk management practices. This is not the place to comment in detail on the latest proposals from the Basel Committee. But I think it is worthwhile to make two points of a more general nature. One concerns the “style” according to which individual institutions are supervised.
And the other concerns the balance between the regulation of individual institutions and the goal of systemic stability. Concerning the “style” of supervision, public authorities have become increasingly aware of the need to make regulation conform to market realities, rather than the other way round.