Third, since the outbreak of the pandemic, stimulated by the ultra-loose monetary policy, valuations in international financial markets have been rising and 1/4  BIS central bankers' speeches  deviating from the fundamentals of the real economy. Heightened vulnerabilities and the risks of downward adjustment in international financial markets may lead to rising risk aversion globally and change cross-border capital flows.
I will now turn to the question posed in the title of this address; is the financial sector over-regulated? How should we attempt to answer such a question?