Although this will require more resources and the development of expert knowledge, it is necessary to strengthen the financial system. For its success, it will also require support in terms of macroprudential supervision and coordination at both the EU and international levels.
One of the big issues thrown up by the recent crisis is the systemic risk and moral hazard associated with what have come to be called Systemically Important Financial Institutions (SIFIs). The underbelly of the recent crisis was the failure of SIFIs which, because of their size, complexity and interconnectedness, brought enormous disruption to the global financial system.