Reflections on the future of the banking system

The causes and consequences of the global financial crisis that started in late 2007 have been actively debate in policy circles, and it is clear that a multi-faceted crisis needs to be approached from a number of different angles. In this article, I focus on two related aspects, "risk" and "conflicts of interest", that are essential elements to any discussion on the future of the banking and financial system. The treatment of risk, whether it be its definition, identification or management, is