My concern is that the task of regulation and supervision has become more challenging and we therefore have to increase the effectiveness of our overall regulatory and supervisory framework to keep pace. I am referring here to the increased size, breadth and geographic scope of banking and to its increased globalization and complexity.
I want to achieve this increased effectiveness by enhancing market discipline, modifying our regulatory standards, and adapting supervisory practice. We also want an efficient regulatory framework, one that achieves its objectives at the lowest cost. Where there are opportunities to achieve the same degree of stability through increased reliance on markets and reduced emphasis on regulation and supervision, we should, of course, do so.