Yet the objective is not to avoid financial crises completely. Historically, these crises have occurred regularly over time and can be viewed as an element of market economies.
In this context, attempts to increase financial market stability should therefore not be understood as an attempt to avoid crises altogether, but as an attempt to increase the system’s resilience and, by doing so, to limit the dire consequences. The usual fear is that stricter regulation may introduce additional frictions and hamper economic growth.