Together, this supervisory guidance offers a clear set of sound practices that, when implemented appropriately, serves to enhance and support market discipline by strengthening the risk management processes of major creditors and counterparties. Supervisory Lessons Learned[heading? If so, bold and followed by new para.]
Events in developing and developed financial markets and the various types of losses posted by banking institutions over the past two years, including recent events surrounding bank hedge fund relationships, have also provided supervisors and examiners with important lessons.