Underpinning systemic stability - the case for standards

The response to the crisis has been inevitable, multifaceted and massive. We are now seeing a tsunami of official planned interventions designed to change the behaviour of bankers and other market participants. They can be grouped into three policy areas: first, innovations in macroprudential or systemic policy designed to limit leverage and reduce credit bubbles; second microprudential measures such as new capital and liquidity rules (commonly known as Basel III), guidelines on remuneration, im