But, what is worth understanding is that there is now general agreement that moral hazard is a significant problem, that the markets are increasingly complex making it more difficult for supervisors and regulators - and that supervision and regulation have significant costs and inefficiencies.
Several things prompted us to review that approach, and one of them was a worry about the risks which we were incurring on behalf of taxpayers. What would happen if, despite our banking supervision, a bank were to get into difficulties?