I have tried today to suggest that an explicit effort to specify relevant aims as they pertain to different kinds of banking organizations can provide a basis for rationalizing applicable regulatory frameworks – sometimes by paring back or foregoing regulation for certain kinds of firms, and sometimes by adding a regulatory measure where the relevant aim has not been adequately promoted by existing measures.
By design and necessity, I have offered only a handful of illustrations as to how this perspective might lead to certain regulatory changes. I look forward to debate on the merits of these, and other, possible implications of a more precise specification of prudential regulatory aims.