*** This version: October 18, 2022.1 Dear Ladies and Gentlemen, Dear members of the International Banking Research Network, Ten years ago, the global economy and global financial markets were recovering from the global financial crisis. Cross-border activities of global banks had not only brought welfare gains, but excessive risk taking brought many financial institutions to the brink of insolvency.
Governments stepped in to rescue failing financial institutions. Declining trade flows, recessions, and fiscal constraints have been the result. Policymakers globally acted forcefully by tightening financial regulation – thereby reducing the likelihood and severity of future financial crises.