We should therefore step up efforts to resolve the global imbalances in trade and capital movements that were among the root causes of the global financial crisis. Although the issue of these global imbalances has repeatedly loomed as a problem in the past, the international community has barely undertaken joint efforts to reduce them.
Stability is promoted by preventing applicants with potentially destabilising weaknesses, such as unqualified or unscrupulous manage-ment or insufficient capital, from entering the system. Unfortunately, there is no reliable formula to determine whether a bank will fail or succeed. The regulator can only apply international regulatory and supervisory norms to the supervision of banks.