We consider this vitally important because banking is and will remain a highly dynamic industry. Supervisors will have to pay attention to evolving sound practices and ensure that new regulations do not unduly inhibit banks from adopting new banking practices and financial instruments.
William C Dudley, President and Chief Executive Officer of the Federal Reserve Bank of New York, recently delivered a speech entitled: “Making globalization work”. That is exactly what we have to do, and I am pleased to note that the central banks around the world seem to agree on this point.