Smaller institutions did not emerge from the financial crisis unscathed, and we have identified several areas in which the supervision of these institutions can be strengthened. At the same time, we are well aware that regulatory and compliance costs can impose a burden that is disproportionate to the risks these institutions pose to taxpayers and financial stability.
Given the change in the international regulatory climate where risk-based supervision is becoming a “norm”, regulators have to work closely with many professions to ensure that prudential standards and disclosure requirements are set.