2  BIS central bankers’ speeches  traces to what happened in their financial sectors. Those countries that suffered financial sector crises had much deeper output crises. In their important book, This Time Is Different, Carmen Reinhart and Ken Rogoff8 document the fact that over many centuries, downturns that also involved a financial crisis were more severe than those that did not.
Correspondingly, it is the task of each supervisor to develop review procedures for ensuring banks’ compliance with those qualitative requirements to make sure that banks’ systems and controls are adequate. The challenge for supervisory authorities is how to implement the new standards in their existing supervisory regimes.