First, you, as heads and employees of these institutions have to do all you can to succeed in this changing environment. In some cases, this will mean reinventing yourselves and finding even better and more efficient ways of shaping your businesses. And second, I think we supervisors need to identify areas where we could improve the regulatory regime.
And as I see it, there’s one major step we can take here: we need to relieve small, regional, less risky banks and savings banks of the operational burden associated with regulations that were actually established with large international banks in mind. And this brings me to the focal point of my presentation today. 3. Strong regulation, weak institutions?