A specific example of such risks, illustrative of broader developments, was the buildup of large counterparty exposures through derivatives between market participants and AIG that were both inappropriately risk-managed and opaque.
Theories need to be elaborated, empirical evidence gathered, and practical experience gained. A long childhood lies ahead. But at the same time, much has already been achieved. Over the past few years, we have set up a macroprudential framework for Europe. We have defined objectives, developed tools and set out how different policy areas interact.