This is on the back of the notable improvements seen in the Euro area, as well as the robust growth outlook in advanced and emerging Asia. But there are downside risks over the near and medium term that stem from a number of factors.
The job of a regulator should not be to prevent any and all business failures. To attempt to do so would mean that banks would have to conform to excessively costly prudential standards. Business would then tend to slip away to unregulated channels of intermediation. The end result would be a distorted competitive structure and a riskier, not a safer, financial system.