The role of market needs to be enhanced to discipline businesses indulging in excessive risk-taking. But this is not going to be an easy task, especially in the economies that have built-in safety nets which translate to negative incentives and which hamper market discipline on one hand and in turn encourage excessive risk taking by banks on the other.
4  Panel remarks by Vítor Constâncio at the Annual Congress of the European Economic Association, University of Mannheim, 25 August 2015. 4/4  BIS central bankers' speeches