While ultimate goals and objectives remain the same, over the past several years, supervisors have been moving to more “incentive-compatible” approaches to 1) foster sound risk management within the institution rather than compliance with narrow rules and regulations, 2) minimize burden through the use of new examination approaches and internal risk measurement systems, and 3) reinforce market discipline.
Close observers of the market point out that a fall over three successive calendar years had not occurred for over sixty years. What is the essential characteristic of this episode?