This is a pattern we can expect to continue in the years ahead. Indeed, it is this complexity and innovation that leads us, as supervisors, toward a more risk-focused supervisory approach with a greater emphasis on sound management processes.
Only by ensuring that a bank’s management and control processes are sound can we be confident that its risks will remain contained throughout business and market cycles. It is not my intention today to espouse the merits of risk-focused examinations, since I trust we all recognize the value of that approach, especially in the case of larger, more-complex banking institutions.