Supervisors need to  BIS central bankers’ speeches  7  have a through the cycle mentality as times of economic serenity breeds complacence. Supervisors need to stay hungry and not necessarily foolish. 46. Supervisors also need to have a result oriented approach, focussing on outcome of stress tests and risk management processes within banks.
They need to review whether they are commensurate with their assessment of the bank’s risk profile.