Recommendation 69

It is vital that the Government ensures that there is a shared understanding between itself and the regulators over what “informed and responsible risk-taking” means. However, the regulators cannot expect the Government to set the ‘risk appetite’ entirely. What the Government can and should do is give recommendations and set parameters or benchmarks in relation to its economic policy and should be clear in what it asks. The regulators need to take responsibility for ensuring that their policy and supervision adequately assess risk while paving the way for a stable regulatory environment that facilitates growth and innovation.