Interbank markets, derivatives markets and payment systems are becoming more internationally integrated too. •  Finally, the financial system has become more complex, partly because of the rapidly increasing role of unregulated financial entities.
Regulated institutions are now more  BIS Review 51/2007  1  exposed to hedge funds and private equity, while these new players also foster the transfer of risks inside and outside the financial sector. Problems in these unregulated industries can have a larger potential impact on the regulated financial system than before.