So an evaluation of the effects of the new product or activity on the bank’s reputation prior to launch is arguably necessary. Reputational risk and supervision The effects of the financial crisis, combined with the power of the Internet to broadly and quickly publicize information – whether factually accurate or not – should alert banks to how they are managing their reputations.
It is true that we had maintained low interest rates for a relatively long period, even after the summer of 1988 when the economy was clearly on a recovery path, and allowed 1  BIS Review 55/2000  unfounded expectations to be embedded in the market and society that such low interest rates would continue for a considerable period.