The IMF, whatever one might say about its policy advice in the past, has played an important role in this process, providing advice and incentives that promote sound money and long-term stability.
I know that it’s difficult to measure these risks, but neglecting them is no solution either. Once the risk appetite has been defined, risk limits play a major role. They ensure that the risks taken are in line with the risks defined; they make the risk appetite operational. It is important that banks break down these limits by business lines, entities or countries.