Our framework emphasises the role of bank directors in ensuring that banks effectively manage their risks, and on the role of the market in strengthening incentives for prudent management. This helps to promote a sound banking system. However, no banking system is without risk. Depositors still need to make their decisions carefully.
We will keep watching these developments closely. 2. Is our economy rebalancing? There has been a lot of discussion about the big global imbalances that had been allowed to develop over the last decade, and the extent to which they contributed to the Global Financial Crisis. More importantly we are all keen to see how much global rebalancing is now underway with the recovery.