Markets evolve in different ways as economic and financial environments lead participants to seek alternative credit intermediary channels. Capital markets are to be seen as complementary to traditional financial intermediaries, and should therefore not be viewed as a substitutes for a well-functioning banking system.
On financial regulation itself, we are halfway down that road. We managed to reach a global agreement in record time, not just between the industrialised countries, but also now with the systemically important emerging countries on new prudential regulations and fresh requirements in terms of own funds for all banks, with decisions that have far-reaching repercussions.