Although it is too early to assess the implications of the recent changes in financing patterns I have been describing, these developments bear watching. A second set of issues pertains to systemic risk. In particular, the large trading houses, together with the physical trading operations of some large investment banks, are playing an increasingly prominent role in a number of commodity markets.
This report was accompanied by an additional study conducted by the Committee on the longterm economic impact of the new standards, which concluded that there are clear economic benefits from increasing the minimum capital and liquidity requirements from their current levels. These benefits accrue from reducing the probability of financial crises and the output losses associated with such crises.