There really are only two questions here: First, how should bank “soundness” be defined and measured? Second, what should be the minimum level of soundness set by regulators? When the Accord was being crafted, many supervisors may have had an implicit notion of what they meant by soundness -- they probably meant the likelihood of a bank becoming insolvent.
3 At the same time, the difficulty of measuring investment in intangibles points to a more general challenge in quantifying digitalisation and its implications.