Efficient market discipline as well as active and timely supervision will ensure that the financial sector and banks find their way to a more healthy size and structure. Our recommendations will also facilitate their task. Simpler structures will make it easier for both investors and supervisors to monitor banks.
Moreover, the recommendation to improve the quality, comparability and transparency of risk reporting will further facilitate monitoring of  6  BIS central bankers’ speeches  banks. Our recommendations not only facilitate monitoring, but the additional layer of designated bail-in instruments will increase also creditors’ incentives to monitor banks and thereby improves market discipline.