The second argument fails to acknowledge that making the largest firms more resolvable and strengthening their resiliency are two separate goals. 16  19  somewhat on the side of higher capital requirements for these firms. Indeed, there are some academics and others who continue to make a case for even higher capital requirements.
Given its intrinsic function as an intermediary of funds, the banking system should continue to be at the forefront of channeling resources to the productive sectors of the economy that can, in turn, provide a solid basis for a more balanced and sustainable economic growth. With these sound fundamentals as base, we can look forward to brighter prospects for the banking system in 2007.