This raises an interesting and very important question: Is there a conflict between these safety-oriented reforms on the other hand, and growth and investment on the other? Is there a danger that the new regulations perpetuate the present tendencies of excessive risk aversion and liquidity hoarding?
If that is the case, the consequences would be negative for an economic recovery in the short run and for growth in the long run. These questions cannot be passed over lightly. How can the long-run goal of a more resilient financial system be reconciled with the need to have more investment and a more growth-friendly business environment?