Prudential regulation also decreases the risk that the actions of impaired financial institutions could disrupt the flow of credit and thereby intensify what might already be difficult adjustments. A surge in financial market innovations and shift in trading participants has paralleled the rise in global imbalances in recent years.
In extraordinary times such as now, when the world is hostage to super tornadoes and no country is immune, it pays for both to share a common set of expectations. After all, macroeconomic and financial stability involves shared benefits and for both, high stakes. Thank you.