But undermining the solid foundation we have built would not help bring this about. We are facing a fast-changing world characterised by multiple shocks and profound uncertainty. In this setting, over-diluting regulation would leave banks more exposed to shocks and less able to support the transitions on which our future growth will depend.
And that would neither be in the interests of the sector, which would be less profitable, nor the economy, which would lack the financing it needs. At the same time, the nature of financial intermediation is changing, and we must ensure that this contributes to, rather than threatens, the sector’s resilience.