The causes of the financial crisis are widely acknowledged, but what is less well understood in the public debate is how the philosophical approach to the regulation and supervision of the global financial system played an enabling role in the runup to the current financial crisis. This philosophical approach is often described as the “risk-based supervision” (RBS) framework. It has been adopted by the leading developed economies, as well as many other countries throughout the world. Although the RBS framework can be used to describe a general philosophical approach to regulation and supervision of the entire financial system, I will use the term more narrowly—as it applies to official oversight of the banking system.