Micro-level supervision, thus, effectively supplements the largely macro-prudential nature of the Basel III capital adequacy framework. Behavioural changes in banks, including change in culture, should top-up risk management practices for the effectiveness of any capital adequacy framework.
Now, I know that for some people any discussion of the need to increase productivity can be rather unsettling. They tend to associate improvements in productivity in an individual company with downsizing and layoffs. And from there it is only a short step to the belief that strong economy-wide productivity gains can only mean a more difficult job market and higher unemployment.