That is, we have systematically modified our institutional framework so that it is more flexible and more able to adjust to economic shocks than formerly. What I have described above is a good example of this process at work. BIS Review 85/2005  5
As we have seen in the past couple of months, the failure of a large banking organization, even if not deemed individually systemically important under our regulations, can cause markets to reassess the condition of other firms with roughly similar size and risk profiles, and the resulting spillovers can generate significant negative consequences for the broader economy.