BIS Review 34/1998  ˝  - 10 -  There are both benefits and difficulties with the approach that we are discussing with other supervisors both in the U.S. and abroad. It may well be that some form of an incentive compatible strategy might be linked with a regulatory minimum capital as a modification to the Basle standard for market risk.
Such a modification would be to the existing standard that, it is important to emphasize, already uses a bank’s internal risk management models to help achieve supervisory goals.