BIS Review 123/2010  9  discipline, the result of a new resolution regime for systemically critical firms and a number of measures to increase transparency, will complement regulatory oversight. Finally, numerous steps, both prescribed in the legislation and taken independently by regulators, will work to make our financial system more resilient to shocks.
Examples include rules that will strengthen key financial utilities, toughen bank capital and liquidity standards, and require that more derivatives instruments be standardized and traded on exchanges rather than over the counter. Economic engineering is effective only in combination with good economic management. For its part, the Federal Reserve has revamped its supervisory operations to provide more effective and comprehensive oversight.