In the past we have been pretty good in analysing risks to financial stability. We have failed however in effectively translating our analyses into concrete risk-mitigating actions. Indeed, we have been aware of large global imbalances for some time. But little was done about it. While global macroeconomic conditions are not at the origin of the crisis, they have contributed to it.
Self-regulation, typically involving a unique combination of private interests with government or regulatory oversight over them, is an effective and efficient form of regulation for the complex, dynamic and ever-changing financial services industry. The role of selfregulation and, indeed, its very existence, differs from country to country, across market sectors and across the developed and emerging markets.