As a result, both the asset mix and sources of funding of many financial firms had shifted dramatically. The regulatory system had also evolved, notably through progressively more detailed capital requirements and increasing demands that banking organizations enhance their own riskmanagement systems. Supervisors counted on capital and risk management to be supple tools that could ensure stability even as financial activities changed rapidly.
And under innovation, I include more efficient processes and new products, as well as the development of new technology. It is my view, ladies and gentlemen, that our current economic challenges present us with a golden opportunity for advancing an agenda of social partnerships among the Government, business and labour.