On a FMA - Supervisory Conference says OeNB Governor Ewald Nowotny: "The financial world is becoming more complex, the regulatory authorities demand more and more authority, even with an army of guards can be crises not prevent it. "
If this statement as necessary to get there, we could very quickly get to the view that despite increased surveillance to prevent financial crises and therefore can not basically a stricter set of rules is futile. At present my knowledge to work for more than 15 000 civil servants in the various financial market regulators in the EU and the number is surely rising. Whether these officials can really prevent another financial crisis, I highly doubt. However, is clearly established for me - financial crises can be prevented if you know how?
According to my research findings, it is known as building blocks of a crisis. These building blocks are necessary so that a financial crisis can ever make. Recognize early warning signs, you can also consciously to control and intervene so actively in the events. The occurrence of financial crises is indeed inherent in the system are called to: Financial crises are formed in our economic system automatically, but that does not mean that they can not be prevented. If it is possible some
or more blocks to detect at an early stage and consciously counteract this, whether by intervention or by a stringent set of rules, then you reduce the formation of a financial tsunami - so it is a misconception that financial crises , can not be prevented.
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