What I have in mind is the creation of separate regulatory regimes for smaller institutions on the one hand and large multinational banks on the other. This two-tiered proposal has met with a rather muted response so far, and I don’t think it has much hope of being adopted at the political level.
But I nonetheless think it is worth considering as a fundamental approach – one that would systematically address the excess burden placed on smaller institutions’ operational capacities. A two-tiered system could be put into practice by grading the Basel Standards for institutions that are neither multinationals nor large in size.