As this new enthusiasm for financial regulation unfolds, it is important that we keep in mind the basic functions of the financial system, and how they can be strengthened so that the needs of the real economy are better served.
We need to ensure that the financial system continues to play a vital role in intermediating savings for providing adequate levels of funding to the real sector, thereby supporting economic growth. It needs to be recognized that financial markets will remain global and interconnected, while financial innovation would continue to be important to foster economic efficiency.