This does not mean simply banning undesirable activities on the financial markets and stopping market processes. Rather, it is a matter of creating the right incentives for market participants to engage in risk-aware behaviour and putting in place a consistent and reliable overall organisational framework which creates lasting obligation.
This means, for instance, imposing the right kind of regulation on the right kind of business, irrespective of whether it is carried out by a bank or by an institution in the shadow banking system. In this way, regulation can create trust.