Although we are not requiring that these banks report on internal controls for either FDICIA or Sarbanes-Oxley purposes, recent losses at banks and notable corporate scandals demonstrate that sound governance and internal control practices are important for all banks.
Let me say a few words about each of these. Structural reform is a broad area with many priorities. But in general, we can say that policy-makers should aim to encourage efficiency and flexibility in their economies. This is particularly true in the financial sector, where it is vital that all countries work to strengthen their financial markets and institutions.