One might say that we are adopting a three-track approach with regard to capital adequacy rules. Given the differential risk appetite across banks and their business philosophies, it is likely that banks would ‘self select’ their own approach, which in turn, is likely to engender a stabilising influence on the system as a whole.
On the contrary, commercial and investment banks initially benefited from the rapid development of structured financial instruments such as residential mortgage-backed securities (RMBS), credit default swaps (CDSs) and collateralised debt obligations (CDOs)  BIS Review 49/2008  1  by actively managing their own credit portfolios, earning fees from originating, structuring and distributing these instruments and earning revenue from market-making and trading.