John Hurley: Financial Stability Report 2007 Opening statement by Mr John Hurley, Governor of the Central Bank and Financial Services Authority of Ireland, at the presentation of the Financial Stability Report 2007, Dublin, 14 November 2007. *  *  *  I am pleased to welcome you all to the publication of our 2007 Financial Stability Report.
But capital shields against losses only up to a point. And in any case, if the business model is no longer viable, the bank must be allowed to fail – otherwise, incentives are stunted for bank managers to exercise prudence and to improve efficiency. Regarding the development of resolution regimes, progress has been made, although in some countries more so than in others.