8  BIS Review 11/2004  Drawing on the experience of the most advanced financial systems, the instruments of intervention must be strengthened and more resources made available so that the supervisory authority for companies and the stock exchange can take timely action to limit the frequency, magnitude and effects of corporate failures.
A large share of national savings is entrusted by citizens to the State. The security of the savings entrusted to the public sector is fully guaranteed by the State’s power to levy taxes. However, too high a level of public debt adversely affects the financing available for firms and for investment. By limiting growth, it prevents the formation of new savings.