And as markets are moved by expectations, they  8  BIS central bankers’ speeches  resolve to unwind their investments today, or take short positions in order to do it tomorrow. This process immediately weakens the achievements made on the institutional front. A second example comes from the practical implementation of policy decisions taken in response to the crisis.
Traditionally, banking supervisors focus on capital and liquidity. And that will remain the case for new types of risk – in IT, for instance. However, simply wanting to hold sufficient capital to counter any and every new risk has its limitations. For example, how can a server outage of several hours, with all its ramifications, be expressed in terms of financial risk?