Politicians have been warned by Klaas Knot, governor of the Dutch central bank and chair of the Financial Stability Board, about the potential consequences of neglecting financial regulation.

Knot emphasized that failing to prioritize the safeguarding of the financial system could result in governments having to spend significant time developing rescue plans for an economy in free fall.

This warning comes at a time when there is a global trend against the regulatory measures that were previously put in place to enhance the safety of the financial system.

Knot's remarks underscore the critical importance of maintaining a focus on financial stability in order to prevent severe economic downturns.