What Is the Disadvantage of Discretionary Regulation

What is the disadvantage of discretionary regulation?

A) It clearly defines the scope of activities that the bank is not allowed to engage in which makes the bank less competitive relative to investment bank.
B) It increases the investors' required return on the bank's equity due to the regulatory uncertainty, which then raises the bank's cost of capital and reduces it global competitiveness.
C) It expands the scope of activities that the bank can engage in and therefore can make the bank more prone to failure.
D) It requires banks to maintain higher capital standards which then limits the banks' ability to compete in the global market
E) It eliminates the need to regulate the banks and this can be detrimental to the economy as a whole.