It is precisely during those good times, when risks appear low and the financial horizon seems clear, that financial market participants can become overly optimistic and make costly mistakes. Part of the job of supervisors is to counter such trends.
During a high-growth period such as that experienced in the past, a compromise solution to this problem can be found relatively easily as the economy is expanding. Recently, however, it is increasingly difficult to resolve the conflict based on the premise of economic expansion. B.