Hence, the key question is whether the playing field provides sufficient flexibility for financial sector  6  Their sample covers the period 2004-2013 and complements earlier results by Albertazzi and Marchetti (2010), covering the crises years 2008-2009 only. 10 firms to adjust to exogenous trends, to enable structural change, and to deal with legacy issues.
Many of the post-crisis reforms have focused on these areas. Regimes for the recovery and resolution of financial institutions have been reformed; increased capital buffers allow institutions to better withstand adverse shocks; there has been an improvement in systems for surveillance of risks in the banking and in the non-bank sectors.