The financial contagion of the sovereign debt crisis is a case in point. Therefore, substantial risks to fiscal and financial stability can build up if structural reforms, liberalisation and fiscal consolidation are postponed for too long, i.e. in the absence of an effective Ordnungspolitik. This leads to stress in our societies.
As has been suggested by one former regulator abroad, a watchword for supervisors in the new era must be: trust less, verify more. BIS Review 157/2009  5