I will organize my remarks by talking about the three areas I have already mentioned: financial institutions; financial markets; and payment, clearing, and settlement systems. Within each area, I will raise a number of questions. What I want to do is to stimulate ideas, in the hope that some of you may be inspired to continue to probe into these issues.
Where research is needed Financial Institutions. Over the past 15 years or so, regulators and policy-makers have been working hard to improve the soundness of financial institutions. Clearly, this is important and necessary work. But in carrying it out, we must always strive for a balance.