And third, banks are much less leveraged today, thanks to the new regulatory constraints. History teaches us that, always and everywhere, asset price bubbles were accompanied by high leverage. That is not the case now, because banks’ balance sheets are smaller. That reduces the amount of risk in the financial system.
Where we need to be particularly vigilant is with regard to market-based finance, also known as shadow banking. We need to gather the right information and we may need new instruments to make sure that the next big crisis does not come from the shadow banking system. 6/6  BIS central bankers' speeches