The issue has been discussed both at the Bank for International Settlements and at the International Monetary Fund.16 Simultaneously, the European Commission has worked on an impact assessment and recently launched a consultation where two alternative scenarios for structural reform in EU are to be assessed by the banks; one scenario is close to our proposal while the other is somewhat broader both in terms of its scope and the depth of the gorge between the entities to be separated.17 [Page 10: Structural reform on the agenda of the international regulatory community] On the other HLEG proposals Now let me continue with a few words on the rest of our proposals.
One of the main lessons of the recent global financial crisis is that banks must improve their ability to manage risk, so they do not inflict serious damage on the economy. This calls for a stronger risk management culture within banks. This calls for stronger regulation and supervision within central banks and other regulatory agencies.