In the future, we need – at national and global level – to be in a much better position to understand and address trends in credit growth, in system-wide leverage and maturity transformation, and in the inter-linkages within the financial system, to identify and constrain emerging risks. For this we require additional system-wide prudential as well as other tools.
Creating the prudential tools, regulatory set-ups and policy tools required to better constrain system-wide risks, including generating the transparency needed for authorities and markets to be better informed about the risks to the system, is the focus of much of the reform agenda. These changes do of course need to be implemented at national levels.