The novel feature of the market risk guidelines, which were developed by the Basle Committee on Banking Supervision and are being adopted internationally, is the reliance they allow to be placed on banks’ own risk management systems.
Evidently, there is no one size fits all answer as indeed evidenced by the variety of regulatory models around. Going forward, every country and every central bank has to confront and resolve this issue in light of their specific circumstances. Third challenge: Responsibility of central banks towards financial stability 25.