Having said this, I do believe that market disciplines can play a substantial role in most financial systems. In particular, I think policy makers in many countries could usefully give careful thought to the merits of introducing comprehensive and well focused disclosure requirements for banks.
Similarly, I believe there would be much to gain from the adoption of policies designed to strengthen the responsibilities of bank directors, so that the ultimate responsibility for the management of banking risks lies squarely in the boardroom, rather than being awkwardly balanced between the banking supervisor and the bank director.