And a third important response is to recognize that these incremental improvements will be more drastic for some institutions and less drastic for others. The general principle, I think, is that the complexity and focus of both the supervisory examination and the capital requirements should be determined by the complexity, diversity, and perhaps the scale of the organization being examined.
This suggests not only different approaches across nations but also different approaches within  BIS Review 105/1999  2  nations. A one-size-fits-all supervisory and regulatory framework is simply inconsistent with the existing and evolving banking structure. Banks are just too different, with different risk profiles, risk controls, strategies, and approaches to managing risks to be supervised and regulated by one yardstick.