At present, almost 80 percent of the idiosyncratic shocks to a country’s economy remain unsmoothed, and changes in relative prices contribute the most to risk-sharing.
To quote from ASBA’s planning document - “The Banking Industry continues to evolve, leading to a greater concentration, complexity, technological advancements and cross-functional integration within the industry across banks and non-bank operations.” When this is coupled with the development of new markets and new products through technological innovations, the possibility of supervisory arbitrage and the blurring of lines between financial products, we must admit that as Supervisors our plates are full and possibly overflowing.