-7There is every reason to expect that technology and communications will continue to rapidly evolve, and to affect the financial system and financial stability in ways that we cannot fully anticipate. While future innovations may well improve the delivery of financial services and make the system stronger, they may also contain the seeds of potential future systemic vulnerabilities.
Effect of regulation on U.S. banks Evidence overwhelmingly shows that financial crises can cause severe and lasting damage to the economy’s productive capacity and growth potential.1 Post-crisis reforms to financial sector regulation and supervision have been designed to significantly reduce the likelihood and severity of future financial crises.