In our view, prudential supervisors and central bankers would be remiss if we did not address the evolving complexity of our largest banks and ensure that modern techniques were being used to manage their risks.
What started as narrowly focused problems in a few key products—like computer chips—has spread to a wide range of goods. The invasion of Ukraine intensified supply chain problems and pushed up commodity prices and inflation worldwide. And large parts of China are now under a renewed lockdown, causing further supply issues, transportation backlogs and uncertainty.