In his speech, Adams identified three themes to emerge from the banking crisis:
- there is an imperative to ensure that the regulatory capital regime appropriately captures the risks assumed;
- that no single firm or group should either be too big to fail or whose failure should be allowed to seriously disrupt the provision of core financial services to the real economy
- there is a need for regulators to be alert to changes in the activity of non-bank firms (often – but not always – which sit outside of the regulatory perimeter), which result in them assuming risk which economically looks like banking.
Adams dealt specifically with the debate about Global Systemically Important Insurers (G-SIIs). "The view that an insurance group without non-traditional, non-insurance activities cannot be systemic is widely held", he said. "It may even turn out to be true, but frankly the lessons which I have discussed suggest we should not rush to accept it without much greater thought."
The full text of the speech is available here.