The Bank Supervision Department has drawn up the principles regarding the existence of a main risk management function in banks, and all banks have appointed a chief risks officer. The principles of a proper compensation policy have also been formulated, and changes in this sphere are becoming evident world wide.
BIS Review 175/2010  1  My third subject is what is known as the shadow banking system. The practical significance of this term is that it deals with aspects of the financial system that the regulators do not know how to supervise.