2  BIS Review 71/2004  institutions are well prepared to meet most individual shocks, but they rarely consider a configuration of shocks generated endogenously in the system. In particular, these stress tests rarely consider circumstances in which other major players, some initially more vulnerable than others, are reacting similarly and simultaneously to a shared set of exposures.
There is need to foster appropriate and proportional regulation and supervision of the different financial services providers to enhance access to a broader mix of providers and products that meet the needs of different consumers.