Lastly, I will discuss current legislative efforts to modernize our banking system. Key Trends Challenging Bank Supervisors Surely the most profound force transforming the financial, and for that matter other sectors of our economy, is the rapid growth of computer and telecommunications technology.
In finance, a critical and complementary force is the development of intellectual “technologies” that enable financial engineers to separate risk into its various components, and price each component in an economically rational way. Implementation of financial engineering strategies typically requires massive amounts of cheap data processing; and the cheap data processing would not be useful without the formulas required to compute prices.