The completion of the new legislative framework creates the conditions for the market to offer highly standardized , technologically advanced products that can capture a mass customer base, such as persons making micro-payments.
But prudential supervisors, including the Federal Reserve, must also review their existing policies and guidance to identify areas where changes could help firms strengthen their risk management – a process that is already under way. Two areas of focus in this review will be capital and liquidity, the principal buffers that firms have against unexpected shocks.