We also learnt from the crisis that three pillars are required to support a resilient financial system. The first pillar is effective supervision. Important lessons have emerged from the crisis on making supervision stronger and more effective. The second pillar is a robust regulatory framework that integrates a system-wide approach and has built-in buffers to smooth cyclical volatility.
And the third pillar, the theme of this conference, is a resolution framework that is quick and effective, and one that creates the proper backstop to efforts at limiting excessive risk. 7. There are varying models around the world on how responsibilities for the above three pillars are allocated across different agencies.