WASHINGTON - As the institutions they oversee become increasingly complex, regulators will require more participation by bank management in the supervision process, Federal Reserve Bank of New York president William J. McDonough said Wednesday.

Speaking at the International Conference of Banking Supervisors in Basel, Switzerland, he said, "It is my firm conviction that to successfully meet the challenges of the 21st century, our very notion of supervision, broadly speaking, must evolve to include financial institutions themselves and the discipline applied by the marketplace."

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