Once the transparency and governance are in place to allow better partnership, over-creation of financial engineering can be minimized since the financial activities will be focused on the intrinsic value added offered in the financial contracts. BIS central bankers’ speeches  3  14.
Prior to the events of 2008, regulators were already faced with evidence highlighting the shortcomings of Basel II, including over-reliance on financial risk models to determine capital levels and the role of credit rating agencies (I see the conference programme includes the important topic of model risk).