In such an environment, policy-makers could be tempted to take a protective stance and ring-fence their financial systems. But that would hamper the efficient allocation of resources in the global economy, or in other words, that would be bad for growth and jobs.
The Financial Stability Board and the other financial standard-setting bodies, such as the Committee on Payments and Market Infrastructures which I chaired last week in Mexico, play an important role in keeping everyone together and ensuring that the new financial regulations are implemented consistently. Financial protectionism is a temptation that we all have to resist.