Today supervisors and regulators all over the world see the strengthening of the safeguards against financial instability as one of their core tasks. But are the instruments in place today appropriate to achieve this goal? Are recent regulatory initiatives able to improve current practice?
As further credit losses are expected to materialise 2/3  BIS central bankers' speeches  over the coming months, several banks have already started to increase their provisions substantially. A prudent approach to provisioning in the current phase is certainly desirable.