Equally, however, we must take care not to overburden small and medium-sized institutions; they should be governed by simpler regulation. The standardised approaches applied in supervision and de minimis thresholds such as those used in reporting can help us to achieve this proportionality. 2  BIS central bankers’ speeches  Ladies and gentlemen, I’ve outlined four different principles for ensuring good regulation.
In view of the relevance of improved risk management systems under the changing circumstances and the larger emphasis placed on risk management systems in banks under Basel II, it is essential that RBS stabilises at an early date and serves as an important feedback to not only the managements but also the supervisors.