There may be trouble ahead

Is there systemic danger lurking in the financial sector? To any regulator worth his or her salt, the answer to that question must always be yes.

But to those for whom scepticism is not part of the job, it might appear to be a redundant question. Recent banking crises have arisen out of poor controls, too much decentralization, bad management and unforeseen events suddenly swamping weak institutions.

The last few years have been characterized by moves to address these concerns.