Instead of directing our energies to identifying some unknown optimal state, we need to strive for plausible processes and a robust set of institutions. The current narratives criticising over-regulation and over-supervision need to reflect these aspects as well.
For representatives of the financial industry who are suspicious of overprotective administrative bodies as the force behind recent reforms, the evolutionary perspective should offer some alternative explanations. Suffice to say, the precautionary measures that have been taken do not render criticism from the banking industry entirely meaningless. Input from the industry is welcome, as this helps to better understand the permanently evolving financial system.