The task at hand, to which our deliberations here today are meant to contribute, is to see how we can restore confidence and trust in the leadership and staff of banks and other financial institutions, in the effective and efficient functioning of financial markets, and lastly but not least in the ability of regulators to give the right level of comfort around their supervisory practices.
Trust is the most essential prerequisite for a healthy and useful banking and financial system. Global regulatory standards for banking which were refined and adopted following bank failures and other financial stresses in the system, including rules such as Basel III, can help explain how financial disasters transpire and in their construct seek to address the risks, but of course only after the event.