Not only has there been a slowdown in the momentum for reform and further harmonisation of unjustified differences in national supervisory law, in some countries we have even started going backwards. We should all remember that the lesson of the crisis was clear: light-touch regulation and supervision of the banking sector does not work.
Any short-term gains will be more than offset by the damage to the economy caused by the resulting financial instability. So banks must continue to improve in several areas. And now is a good point to stress that financial stability is also good for the banks themselves.