This approach, of harnessing market forces and using improved internal governance to promote financial system soundness, is gaining some support in the international supervisory community, and among academics. This can be highlighted by recent comments from three prominent and highly respected individuals.
•  “As financial transactions become increasingly rapid and complex, I believe we have no choice but to harness market forces, as best we can, to reinforce our supervisory objectives. The appeal of market-led discipline lies not only in its cost effectiveness and flexibility, but also in its limited intrusiveness and its greater adaptability to changing financial environments.