Second, financial supervisors need to step up international cooperation, simply because the financial  BIS Review 12/2009  1  industry is particularly internationalized. Third, while prudential and conduct of business supervision are distinctly different, they are complementary and should both receive due attention. Separating prudential and conduct of business supervision institutionally helps to keep both supervisory goals in clear sight.
As financial sectors today are more concentrated, more integrated and more exposed to the financial markets than ever before, problems at individual institutions are increasingly likely to have systemic consequences. Indeed, during the financial crisis we saw several examples, most notably the collapse of Lehman Brothers in September 2008 which had a truly systemic impact.