Despite these caveats, I am confident that the regulatory measures will help to strengthen incentives for prudent behaviour. However, in the end it is the banks themselves that have to adopt a new culture which is focused more on sustainable returns and less on short-term gains. Here, we still have some way to go. 3.
The ability to see in the dark  Ladies and gentlemen, the examples of the “too big to fail” problem and of compensation schemes show that regulation has done a great deal to increase the willingness of banks and of bankers to see in the dark. The incentives for banks to prudently manage risks have certainly been strengthened.