15 Compared to the vision of systemic risk that I have outlined so far, two weaknesses of the supervisory and regulatory approach that we had before the crisis stand out. For one thing, the old approach focused too much on individual risks and too little on interconnections across intermediaries and markets.
For another thing, it generated a lot of information about some types of intermediaries but much less on others (including the shadow banking system). This made it difficult to understand fully the pro-cyclical behaviour of the system in the aggregate.