After the wave of bank collapses, nationalisations, conversions, break-ups, sales, bailouts – all of which impacted on the real economy – the financial and banking system seems to have stabilised and to be on its way to recovery. However, reforms are essential to make the financial and the banking system truly resilient during periods of stress.
The Basel Committee on Banking Supervision has announced a comprehensive package of measures to strengthening the banking sector. The contents of what we now call Basel III were endorsed by the G20 World leaders, in Seoul beginning of November. Basel III contains bankspecific reforms, the goal of which is to make banks more resilient to shocks.