Financial institutions are now convinced that they can rely on public support if they run into difficulties, according to outgoing Swiss National Bank president Jean-Pierre Roth. Sounding a warning about future practice, Mr. Roth said this perception could increase their risk appetite. All measures should be adopted to limit both this probability and further risks. Without such measures, financial markets could become more risky than anything seen so far. Mr. Roth also said -- in the light of the crisis -- that it was important for central banks to retain their operational independence so that they would remain able to take whatever risks necessary to preserve financial stability. Elsewhere, the central bank chief noted that supervisory authorities could only influence markets with regulatory measures in the long-term. At times of crisis, only central banks were in a position to take action.

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