For this reason, it is essential to further improve banks’ risk management and to review their capital and liquidity requirements. My co-panelist Baron de Rothschild will probably elaborate on these banking-related issues. In addition, supervision has to be taken one step further if we want to fully address the causes of the current financial crisis.
It is not sufficient to safeguard the stability of each individual bank; instead, systemic risk has to be identified and combated. And obviously central banks must and will play an integral part in this macroprudential supervision. What is important to note is that these and other problems, such as internationally comparable accounting standards, can only be resolved at an international level.