There are divergences of opinion on this matter not only between the supervised institutions and the supervisors but also, in some cases, among the supervisors themselves. In order to assess both courses of action (modernise or redesign), it would appear to be the obvious approach to use current, accepted criteria in the field of prudential supervision.
These include: The security level of the individual institution, i.e. its capacity and expertise in managing risk and its cushion of capital against losses. And closely linked to that: the overall stability of the banking system. I assume nobody wants a level of financial market stability that is lower than now. as well as The regulatory burden and level playing field aspects.