2  BIS central bankers’ speeches  Some regulatory issues I would now like to turn to the related topic of the future direction of financial regulation. This is obviously a very broad topic, but there are three issues that I would like to touch on.
These are: the importance of system-wide supervision; the regulation of innovation in the financial system; and the interconnections between financial institutions. First, the importance of supervision. One of the clearest lessons from financial history is that the financial sector has an uncanny ability of finding ways of connecting savers with borrowers. When obstacles are put in the way, detours are often found.