The “cobra effect” and the preferential regulatory treatment of sovereign debt  Having mentioned these, to my mind, important three aspects of “good regulation”, I would like to touch briefly on a core problem: complexity.
In my opinion, complexity is one of the 2  BIS central bankers’ speeches  central challenges in both the design and the implementation of new – and, hopefully, good – regulation. And nobody would dispute the fact that financial markets and their participants have become very complex. There are many levers which supervisors and/or lawmakers can pull.