And the disclosure requirements under these standards will give investors the transparency they need to make well-founded decisions. These reforms together with those that have already been accomplished will strengthen institutions’ stability and systemic resilience. Nevertheless, when speaking about regulatory reforms, we have to bear in mind that most of those which I have mentioned only affect the regulated banking sector.
In the context of low interest rates and tougher regulation, there are incentives for regulatory arbitrage through the shifting of assets from the regulated banking sector to somewhere outside the regulatory perimeter. And we are seeing significant movement in this direction. That is why the G20 has agreed on a roadmap for regulating the shadow banking sector.