Moreover, if a rapid growth of lending, for example to a booming property market, can only be financed from the short-term markets, it is often an indication of growing risks on a bank’s asset side.9 Third, the existing supervisory structures focused on risks facing institutions rather than the financial system as a whole.
Public reaction to the crisis and need to rebuild trust The huge cost of the financial crisis, both in terms of direct public support to banks and lost economic output has sadly fallen to tax payers. This has caused an understandable and justified public outcry.