Hence to mitigate these risks, Government must be able to demonstrate, in a credible manner, that it will not allow its fiscal position to become unsustainable.
Exposures of the banking sector to the shadow-banking sector and misconduct (i.e. misselling of financial products, market manipulation, rule completion breaches or money laundering) require that banking, insurance, market, and other regulators work closely together to develop coordinated tools to address macro-prudential risks. This joint effort is, however, at an early stage, given the diversity of mandates and governance structures among regulators.