More than ten years have passed since the global financial crisis triggered a comprehensive regulatory reform process. Many important measures have been put in place since then. The title of the next panel discussion therefore raises a very pertinent question for global regulators: where next?
Should regulators take a long break, as some stakeholders might quietly hope? Or is there still work to be done? As you might imagine, I tend towards the view that it is not the time for regulators to rest.
In my remarks today, I will touch upon three areas that require further efforts. First, for the banking sector, we need to ensure the full and timely implementation of Basel III standards and a proper evaluation of the effects of the reforms. Second, macroprudential policy based on robust quantitative assessments should play a crucial role in sustaining the resilience of the financial sector over the financial cycle. Third, we need to see active monitoring of the non-bank financial sector, including from a system-wide perspective. This is because of the growing size and risk-taking activity of non-banks which may call for macroprudential powers and tools in this area.
