In fact, many institutions already have both of these elements in place and may not need to adjust their practices very much. I believe we are all aware of the central role that CRE lending played in the banking problems of the late 1980s and early 1990s.
Many initiatives have been converted into legislation or have already entered into force; others will follow in the months ahead. Now I come to the “but” I just mentioned. In order to make the financial system truly safer, I believe we must pay more attention to the following two aspects in the future than we did up to now.