I see two areas where progress is needed in promoting a consistent framework of supervision and rules that underpin the functioning of capital markets. First, further harmonising insolvency rules and consumer protection laws is essential to protect rights and contracts, create a level playing field and promote cross-border investment.
I would now like to discuss this process in further detail as it relates to the credit-rating agencies, the originate-to-distribute model for mortgage lending, the important role of the new Basel II framework, and improvements in risk-management practices that financial institutions will need to make in several key areas.