In my view, the past two years have demonstrated a number of weaknesses of the financial system. It is imperative for policy-makers – and market participants – to address these weaknesses so as to avoid the recurrence of similar excesses and imbalances in the future.
For us as central bankers, it is essential for an additional reason: even if tackling the structural weaknesses is a task for the longer term, we need to start now in order to contribute to the restoration of confidence also in the short term. The markets need to see that serious and concerted efforts are undertaken to safeguard financial stability in a sustained manner.