One should bear in mind, however, that the new recommendations will be able to address the specific risks that arose during the crisis, and we all recognise the ability of the shadow banking sector to innovate. Although new regulations on systemically important financial institutions have recently been approved, the “too-big-to-fail” issue is still a major concern, and it merits strict monitoring.
Some progress is being made in developing and testing methodology for the identification of global systemically important insurers (G-SIIs), and in developing appropriate supervision guidelines. An identification methodology for all non-bank financial institutions of global systemic relevance is also under preparation. For banking institutions (G-SIFI) the implementation of the framework recently agreed upon has much farther to go; we need to rapidly move forward.