Indeed, they said, to safeguard the international financial system from systemic risk, the main priority was promoting an “industry-led” effort to improve internal risk management and related systems.
This, in a nutshell, was the view espoused by the Group of Thirty report following the outbreak of the Asian crisis.3 But this thesis was often accompanied by the argument to the effect that “you, regulators and supervisors, will always be behind financial innovation; it would be better to allow us, the big financial international players, to selfregulate; we are grown-ups, we can take care of ourselves”.