Simply cherry-picking a bank's best assets to receive lower requirements is not workable. Indeed, since supervisors do not believe that overall capital requirements are excessive, you should not expect to be offered lower risk-weights for low-risk assets without also accepting higher risk-weights for higher risk activities.
At the very least, that might mean a higher risk-weight--possibly far higher on the basis of the historical record--for classified assets. It could also mean a higher riskweight for subprime and generally riskier loans. Conclusion In closing, I would emphasize that the current standard appears to be working well for community banks.