Turning to regulation, the main challenges facing authorities are:   On the one hand, to obtain a timely diagnostic of risks, ensuring the quality, consistency, clarity and opportunity of the rules; and    On the other hand, to limit the regulatory initiatives to merely those necessary to carry on the objectives underlying supervisory activities, and thus avoid unnecessarily inhibiting the development of financial activity and innovation in the sector.
While being subject to considerable uncertainty, recent comprehensive impact studies by the Basel Committee and the Financial Stability Board suggest the economic impact during the transition period will be moderate and that the long-term net benefits will be positive. Now it is up to the G20 Heads of State and Government to approve the package at their Seoul summit in November.