I am sure that many of you have innovative ideas on how to foster growth by means of prudential regulation and supervisory action. Some might suggest restraint on the side of regulators and supervisors as a way of fostering growth – and they may be right regarding some of the many topics that were regulated over the last seven years.
But if you now expect me to provide comfort with a regulatory break or even promise supervisory leniency, I am afraid you are in for a disappointment. The financial crisis has shown that there is little more damaging for sustainable growth than a malfunctioning banking sector.