One may legitimately feel concerned by such an evolution, which sounds like asking the fox to watch over the hens. However we must realise that financial markets are not only a major factor of change, they are also potentially a powerful factor of discipline. They are forcing credit institutions to be more transparent and to communicate more reliable information.
The development of new, more sophisticated, risk management techniques, under the form of internal models, has been, at its roots, a private initiative from market participants. In order to integrate this modeling approach in the monitoring of banks solvency, the Basle Committee on Banking Supervision is not designing a new system from scratch.