The coordination bodies created by the Lamfalussy procedure have helped to harmonize regulation and strengthen cooperation among the authorities of the various countries. In 2006 we took part in coordinated simulations of critical events, so as to be ready to cope with episodes of instability having international effects.
The convergence of supervisory practices must be carried further, to make the system less cumbersome, reduce the costs for banks and ensure equal competitive conditions. BIS Review 56/2007  9  To simplify the rules while protecting stability and to keep watch over banks’ reputations by increasing the safeguards for customers have been our principles in regulating the banking system.