Second, while strong capital regulation is necessary for a sound financial system, it is not, on its own, sufficient. In my remarks this afternoon, I will concentrate on the first of these points and discuss how capital regulation reform is evolving in the wake of the crisis.
In my view, the cooperative supervisory model has good prospects of providing a stable setting for financial market regulation both now and in the years to come. A redesign of the supervisory architecture does not just concern the level at which competencies for supervision of individual institutions are allocated, however.