The Financial Stability Board said supervisors of major banks must improve their performance quickly and should assess the business models of lenders as well as the financial products they offer. The FSB made dozens of recommendations for oversight of the financial system. For example, the board warned that national supervision of banks must not return to a light touch when times are good. "In the future, supervisory authorities must conduct themselves with a 'through the cycle' mentality and resist the forces toward leniency which go hand in hand with economic serenity," the FSB said.
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