But the regulators do not run the institutions and there are no absolute guarantees of safety. Nevertheless, if things do implode, it would be the regulator that would be deemed to be responsible. BIS Review 166/2010  1  The possibility also exists that there has been too much of a focus on banks, rather than on the broader financial system.
Over-regulation of banks could not only reduce lending, but it could result in more disintermediation, thus preparing the ground for the next crisis. What the recent crisis has shown is the inventiveness of financial markets to come up with products or institutions that circumvent existing regulations.