I believe that both bank supervisors and the banking industry have learned important lessons from the experience of the past ten years, specifically about the need to actively monitor, manage, and control risks. Through its supervisory process, the Federal Reserve seeks to maintain a proper balance: permitting banks maximum freedom, while still protecting the safety net and maintaining financial stability.
Maintaining responsible banking and responsible bank supervision is the key. We must all work to identify risks and to ensure they are adequately monitored and controlled. That result will lead to better banking practices, to more stable earnings and asset quality for the industry, and to less regulatory and legislative risk. These are goals we all share. BIS Review 104/1997