Much more would therefore be required of the Board of Directors of banks and of the technical expertise of the line functions that relate to prudential management of risks. This is the form of market-driven accountability that I believe will be needed in restructuring the financial landscape – and it is quite different from just simply having more regulations.
[Slide 5: Adjustment of public finance in stressed countries] Fiscal imbalances Since the outbreak of the sovereign debt crisis, most countries, notably those in the distressed countries, have undertaken substantial fiscal adjustment efforts. Based on the European Commission’s Spring 2013 Economic Forecast, Greece improved its structural primary balance by more than 10.6 percentage points between 2009 and 2012.