Finally, banks need to exercise strong discipline so that when good times return, they do not forget the current market difficulties and return to more profligate ways. Indeed, now is the time for banks to establish good risk management policies addressing the issues I have just discussed, so that strong risk discipline is codified.
Concluding thoughts Of course, it is not just the banking industry, but also those of us in the public sector who have some key lessons to learn. Banks and supervisors alike need to undertake additional work to facilitate the building of robust methods of quality assurance in the financial markets that will help to restore and maintain confidence.