II  Challenges for financial institutions  Let me now move to the key challenges for financial institutions and markets in general over the coming months. I would like to start by stressing that it is my firm belief that many of the weaknesses highlighted by the recent events can be addressed by market-led initiatives and selfregulation.
Nonetheless, it seems that regulatory measures are needed too. The first challenge is to improve market transparency. The market correction has demonstrated the importance of the disclosure and valuation of risks. In particular, better disclosure of risks, as well as accounting and risk management practices, is of the essence in the short term.