But then, what can explain the vast array of opinions on how to resolve the crisis? As I said at the beginning of my speech, the debate runs along the front lines of one of the most well known trade-offs in economics: the trade-off between efficiency and distribution, or, put differently, between sound incentives and burden sharing.
Nonetheless, regulators should quickly agree on appropriate international standards to give banks certainty over long-term planning around business models. Technological challenges The final challenge for banks comes from the impact of technology, which is leading to increased competition from non-banks in domains traditionally considered to be the core business of banks: lending and payment services.