According to the review, the major factors that have drove the world in the current financial crisis include among others the increasing financial innovation, growth in the market size, as well as microeconomic imbalances thus, causing overall systemic risk increase. In light of the foregoing crisis there was a great need to revaluate the existing regulatory regime, for instance the assumption that markets function in an efficient and rational way. To this end, Turner proposes a regulatory policy change in his review to a regulation approach that is more systematic (Turner 2009).
In designing capital adequacy set of laws, the review postulate a couple of variant approaches which include: forming rules that are geared towards influencing the activities undertaken by different banks through sinking excessive risk taking incentives for the good of the economy at large (FSA 2009). Alternatively, the rules can be formed to shield the creditors in case of failure by a single bank. Turner in his review postulate that in order to direct more attention on Tier 1 capital and Core Tier 1, it would be prudent to boost the value of capital held by banks. The review further proposes that the current optimum level of capital should be substituted with a novel formation. The review however, acknowledges that the increase in the capital requirement should wait until the economy is more stable (Cooper 2009).