If an ideal quality adjustment method had been available to us, quality adjusted prices of financial services would have increased reflecting their declined quality. Such a statistical treatment has hardly been implemented in practice, and the situation seems to remain the same in the future.
7 Newly established ex ante policies include building the resilience of institutions by requiring more and higher-quality capital and liquidity buffers; a regime of stress tests undertaken by supervisors; and resolution planning, which requires firms to analyze their own potential for distress or failure and create a plan to be used in the event of bankruptcy.