It thus has to demonstrate its capacity to implement actions regarding transparency, valuation and risk management practices so as to finally turn the page on this difficult episode. Supervisors and central banks around the globe will be monitoring very closely the adequacy of the actions taken by the financial industry to restore market confidence.
In this context, an appropriate balance needs to be struck between market discipline and sound regulation that does not stifle financial innovation. Finally, the experience of the turmoil also showed that EU arrangements for financial stability should be enhanced.