Instead, the approach being used is to favor assessment of the quality  2  BIS Review 95/2007  of risk management practices by giving banks greater flexibility to respond to changing opportunities and allowing them to take risks so long as they demonstrate the ability to manage and price for those risks.
Turning to my second point, in our quest to address some banks being “too big to fail” we have created a dedicated architecture for the crisis management of larger and cross-border banks. But less attention has been devoted to the tools for managing crises in small and medium-sized banks.