The initiatives undertaken at the global and European level should address the transparency and risk-taking behaviour of financial institutions, and thus be consistent with general principles such as: i) correct risk-taking incentives and avoid moral hazard; ii) minimise distortion in the banking sector; iii) ensure a global level-playing field.
We must ensure that governments remain vigilant on safeguarding financial stability and financial market participants accountable for their decisions. In this context, I believe we should avoid creating new incentives for moral hazard for instance by creating an “emergency fund” for banks financed or co-financed by taxpayers’ money. 4  BIS Review 26/2010  Is the global economy headed for a lost decade?