Given all these beneﬁts, the new regime for the regulation and resolution of systemically important banks is also fairly new, and we are learning how it is operating. This experience reveals room for improvement of the current system and issues that warrant ongoing monitoring.
In the banking sector, we expect further expansion of bank resources, improvement in banks asset quality through NPL disposal, and improved capitalization. We should also see a stronger banking system resulting from more mergers and acquisitions. This should make banks better financial intermediaries and risks managers. 2  BIS Review 9/2007  Ladies and gentlemen.