In the wake of the 2008 financial crisis, financial stability has assumed much more importance than before. Monetary policy transmission mechanism is severely disrupted when a financial system is crippled by instability. This is not news to most of you; financial papers are replete with discussions on this issue.
Regulatory authorities are rightly placing greater emphasis on quality human capital in the financial services industry. They have come up with stringent requirements for appointment and accountability of senior officers and board directors. In some countries, the UK for instance, appointment for senior positions including appointment of board directors has to go through regulatory authorities.