The majority of countries already have less restrictive rules in place for smaller banks in order to reduce the operational burden imposed on them. I am a strong proponent of extending this proportionality further, because the highly complex regulatory reforms introduced in the wake of the financial crisis were intended for global banks and overburden smaller, regional banks.
In sum, then, we ought to focus on truly global aspects, like regulating globally active banks, while leaving it to individual countries to carry out those tasks that they are better placed to take care of, such as regulating locally active banks. 4 The challenge of supervisory cooperation The second area in which we will see a re-balancing of global cooperation is supervisory cooperation.