Given the widespread public belief in most countries that “governments never allow banks to fail”, we do not argue that market forces alone will do the job, but we do see the disciplines of the market as being the dominant and most effective means  BIS Review 108/1997  -6-  for promoting a robust financial system.
There are three key elements in our market-based approach to banking supervision. •  The first is to ensure that the marketplace has sufficient and reliable information on banks on which to base financial assessments and decisions.