Regulators are continually learning about and adapting to new technologies, just as banks are, and regulators can play an important, complementary role, making the regulatory rules of the road clear and transparent to foster bank innovation. Innovation does pose challenges within the regulated banking system, which can be amplified for community banks.
We also tended to hear a great deal about the so-called “decoupling” thesis. This was the idea that the emerging economies would continue their recent strong growth despite the economic downturn in Europe and the United States. Following the collapse of Lehman Brothers in mid-September we now know that these scenarios were too optimistic.