It is an understatement to say that this approach proved inadequate in the crisis. 4  See Kaufmann and Weber (forthcoming). See Goodhart and Lastra (2017). 6 See Bernanke (2013). 5  -5The post-crisis regime has shifted to implementing preventive policies well in advance of any crisis.
7 Newly established ex ante policies include building the resilience of institutions by requiring more and higher-quality capital and liquidity buffers; a regime of stress tests undertaken by supervisors; and resolution planning, which requires firms to analyze their own potential for distress or failure and create a plan to be used in the event of bankruptcy.