But we also have the responsibility to ensure that private sector institutions have the capacity to take prudent and appropriate risks. Our goal as supervisors should not be to prevent all bank failures, but to maintain sufficient prudential standards so that banking problems that do occur do not become widespread.
Guy Debelle: Regulatory reforms and their implications for financial markets, funding costs and monetary policy Address by Mr Guy Debelle, Assistant Governor (Financial Markets) of the Reserve Bank of Australia, to the Financial Services Institute of Australia, Adelaide, 18 September 2012. *  *  *  Matt Boge provided invaluable help in the preparation of this speech.