As regards gastronomy, there are now a large number of Japanese restaurants in Paris. French cuisine has drawn on Japanese cuisine, and vice-versa. Rather than simply perpetuate their traditions, Japanese and French chefs seek to extend the realm of nouvelle cuisine. Japan and France have established a particularly constructive relation in many economic spheres.
5 But offering this protection, shielding depositors and banks from risk, can have the perverse effect of encouraging risk-taking, creating what is called “moral hazard.” Supervision and regulation—including capital regulation— provides a critical counterbalance, to ensure that banks, not the taxpayers, internalize the costs to society of that risk-taking.