Both approaches have valid arguments, and I would argue that both paths can be followed at the same time. The advocates of risk reduction argue that the underlying vulnerabilities in the banking sector which triggered the crisis need to be forcefully tackled.
18  See Ross Levine (2005), "Finance and Growth: Theory and Evidence," Philippe Aghion and Steven Durlauf, eds., Handbook of Economic Growth (New York: Elsevier); and Randall S. Kroszner and Philip E. Strahan (2006), "Regulation and Deregulation of the U.S. Banking Industry: Causes, Consequences, and Implications of the Future," unpublished paper.