Today is also a historic day. Effective supervision of our financial system requires us as regulators to see both the forest and the trees. We need to improve our understanding of individual financial institutions (the trees) and their intricate connections to the forest ecosystem of financial markets and the macro-economy.
Today’s signing of this Memorandum of Understanding (MOU) between the SEC and the Central Bank is about advancing this process of better managing systemic risk. This is not about ego or territory; it’s about ensuring the protection of every citizen who trusts their bank, securities firm, or financial institution with their money.