The new financial system as a whole, as well as its individual institutions, will need to be  BIS Review 147/2009  1  more resilient to shocks. The present-day financial system is a complex system, characterized by a high level of interconnectedness. Therefore, monitoring the financial system as a whole, and the linkages between its elements, has become all the more important.
Such “macro-prudential” supervision mechanisms help to spot sources of financial instability at an early stage. A positive development in this regard is the establishment of the European Systemic Risk Board next year. But changes are also at hand to strengthen each financial institution individually. And some of these changes will have a profound effect on the balance between banks and supervisors.