These reforms include the extension of central banks’ powers with regard to supervision, market conduct and consumer protection; the provision of more appropriate structures and policy instruments to assess and mitigate “systemic risks”; the need to address the “too-bigto-fail” moral hazard problems associated with systemically important financial institutions; and the need to close the regulatory gaps that were prevalent in the build-up to the financial crisis.
Although some countries are proceeding with regulatory changes, a degree of international convergence around a common international framework is needed. I have briefly highlighted the key issues raised in the Financial Stability Review. More detailed analyses are available in the publication itself, and will be highlighted by the authors’ presentations.