The purpose of each of these steps is to improve the traditional prudential regulation of systemically  1  For more information, see Board of Governors of the Federal Reserve System (2012), “Federal Reserve Releases Paper Describing Methodology Used in 2012 Comprehensive Capital Analysis and Review Stress Test,” press release, March 12; and Board of Governors of the Federal Reserve System (2012), “Federal Reserve Announces Summary Results of Latest Round of Bank Stress Tests,” press release, March 13.
2  BIS central bankers’ speeches  important firms while fostering greater stability and resilience in the banking system as a whole. Nonbank Financial Firms Gaps in the regulatory structure, which allowed some systemically important nonbank financial firms to avoid strong, comprehensive oversight, were a significant contributor to the crisis.