Until recently, regulatory and supervisory systems were designed to retrospectively identify at what point in time, so to say, a thief stole your money, not to alert you when he is actually stealing it. The rogue banker could beat the system and beat the house as well. A bad bank anywhere can affect good banks everywhere.
In the wake of the financial crisis and given the rising 5/7  BIS central bankers' speeches  frequency of destabilizing shocks to financial systems the world over, regulatory and supervisory systems have undergone significant improvements. The Bank has made important strides in the improvement of its regulatory and supervisory system.