We saw some of the benefits of increased bank capital and liquidity in terms of market functioning in the aftermath of the Brexit vote. It is still early days for financial reform, though, and we may not have gotten everything perfectly right.
The Financial Stability Board is appropriately focused on measuring the effects of the reforms, including those on financial market functioning and cross-border financial market integration. Another important aspect that should be considered, where possible, is the impact on wealth and income distribution.21 A sound financial system also requires macroprudential tools to lean against credit cycles.