Why would international policy coordination be beneficial in the first place? After all, every country strives to meet its own growth and stability objectives in order to produce a strong and stable economy. Isn’t that enough? The message from the crisis, loud and clear, was “no”.
To sum up: Financial regulation needs to be consistent across borders, across sectors and across asset classes. Ensuring these three dimensions of consistency will help to make the financial system a safer place. However, while being a safer place in the aggregate, the financial system is not necessarily a safe place for individual banks.