I have discussed three issues - the endogenous nature of financial risks, the problem of hidden aggregate exposure and the problem of procyclicality of capital requirements - to illustrate this point. I hope that I have convinced you that we could indeed benefit from a shift in perspective from an individual institution- to a system perspective.
12 See “Banking, insurance and securities supervisors enhance EU-wide cooperation”, press release dated 24 November 2005, at www.c-ebs.org, www.ceiops.org, www.cesr-eu.org. 8  BIS Review 86/2005