http://www.bis.org/list/mgtspeeches/from_01012011/index.rss Speeches by senior management of the Bank for International Settlements. 2011 to 2012 en http://www.bis.org/speeches/sp121122.htm Speech by Jaime Caruana, General Manager of the Bank for International Settlements, at the 48th SEACEN Governors' Conference and High-Level Seminar, Ulaanbaatar, 22-24 November 2012. Global liquidity has become a focus of the international policy debate. Despite accommodative monetary policies and a pickup in search-for-yield behaviour, several factors seem to suggest that financial stability risks stemming from global liquidity conditions are limited. In particular, elements of credit growth, notably cross-border flows, remain muted in comparison to ... Assessing global liquidity from a financial stability perspective 2012-11-22T15:34:00Z Global liquidity has become a focus of the international policy debate. Despite accommodative monetary policies and a pickup in search-for-yield behaviour, several factors seem to suggest that financial stability risks stemming from global liquidity conditions are limited. In particular, elements of credit growth, notably cross-border flows, remain muted in comparison to past liquidity surges. Meanwhile, the macroeconomic environment in the major economies is still weak and uncertain. That said, the extremely low volatility in financial markets contrasts with a widespread slowdown in global economic growth and the well known risks related to public finances and to impaired banking systems in some advanced economies. This could make global liquidity conditions vulnerable to event risks. Furthermore, stocks of credit may also be a concern. In advanced economies, these need to fall further to support a self-sustaining recovery. For several emerging market economies, including in Asia, financial stability risks stem primarily from prolonged credit and property price booms, and the prospect of a turn in the credit cycle. The current calm should thus be used to implement policies to contain these medium-term risks. Assessing global liquidity from a financial stability perspective 2012-11-22T15:34:00Z BIS Caruana Jaime Caruana PDF version http://www.bis.org/speeches/sp121122.pdf Jaime Caruana Caruana Mr General Manager Bank for International Settlements http://www.bis.org/speeches/sp121116.htm Speech by Jaime Caruana, General Manager of the Bank for International Settlements, to the CEMLA-SEACEN conference on "The role of central banks in macroeconomic and financial stability: the challenges in an uncertain and volatile world", Punta del Este, Uruguay, 16 November 2012. Systematic incorporation of spillovers is an essential but missing aspect of most monetary policy decision-making processes. The policy influences that need to be taken into account involve short-term policy rates, long-term bond yields, exchange rates and asset prices on the one hand, and quantities, especially capital flows, on the other. The result of ignoring policy interactions has been that global policy interest rates have tended to fall too low when the major countries and currency areas implement accommodative monetary policies. International monetary policy interactions: challenges and prospects 2012-11-16T15:30:00Z Systematic incorporation of spillovers is an essential but missing aspect of most monetary policy decision-making processes. The policy influences that need to be taken into account involve short-term policy rates, long-term bond yields, exchange rates and asset prices on the one hand, and quantities, especially capital flows, on the other. The result of ignoring policy interactions has been that global policy interest rates have tended to fall too low when the major countries and currency areas implement accommodative monetary policies. International monetary policy interactions: challenges and prospects 2012-11-16T15:30:00Z BIS Caruana Jaime Caruana PDF version http://www.bis.org/speeches/sp121116.pdf Jaime Caruana Caruana Mr General Manager Bank for International Settlements http://www.bis.org/speeches/sp121109a.htm Essay prepared for a lecture by Claudio Borio, Deputy Head of Monetary and Economic Department and Director of Research and Statistics of the Bank for International Settlements, at the Munich Seminar series, co-organised by the University of Munich, the Ifo Institute for Economic Research and the Sueddeutsche Zeitung, Munich, 15 October 2012. Five years after the financial crisis, the global economy remains unbalanced and many of the advanced countries are still struggling to return to robust, sustainable growth. Taking a historical perspective, I argue that this predicament reflects a failure to adjust to profound changes in the economic landscape, which have .... On time, stocks and flows: Understanding the global macroeconomic challenges 2012-11-09T16:17:00Z Five years after the financial crisis, the global economy remains unbalanced and many of the advanced countries are still struggling to return to robust, sustainable growth. Taking a historical perspective, I argue that this predicament reflects a failure to adjust to profound changes in the economic landscape, which have given rise to the (re-)emergence of major financial booms and busts. The economic developments that really matter now take much longer to unfold - economic time has slowed down relative to calendar time - and yet the planning horizons of economic agents have shortened. The key problems arise from the cumulative effects of past decisions on stocks, and yet these effects are treated as short-term flow issues. The risk is that instability will become entrenched in the system. Policy needs to adjust. On time, stocks and flows: Understanding the global macroeconomic challenges 2012-11-09T16:17:00Z BIS debt banking crises financial cycle balance sheet recessions short horizons PDF version http://www.bis.org/speeches/sp121109a.pdf Claudio Borio Borio Mr Deputy Head of Monetary and Economic Department and Director of Research and Statistics Bank for International Settlements http://www.bis.org/speeches/sp121109.htm Opening remarks by Jaime Caruana, General Manager of the Bank for International Settlements, at the First Annual GPFI Conference on Standard-Setting Bodies and Financial Inclusion: Promoting Financial inclusion through Proportionate Standards and Guidance, hosted by the Financial Stability Institute at the Bank for International Settlements, Basel, 29 October 2012. We convene today in response to the call of the G20 Leaders, which is chaired by Mexico this year, for deeper discussions on the important topic of promoting financial inclusion... Financial inclusion: the role of the Basel Process 2012-11-09T15:55:00Z I am pleased to welcome participants to this unique event that brings international standard-setting bodies together with advanced as well as emerging and developing countries. We convene today in response to the call of the G20 Leaders, which is chaired by Mexico this year, for deeper discussions on the important topic of promoting financial inclusion. I am delighted, therefore, that the Financial Stability Institute is hosting this Conference here at the BIS, where groups of national experts are committed to making the financial sector safer and better able to support the economy. The framework of accords on the financial sector sets out areas of financial activity where the development of internationally agreed standards of sound practice is desirable. The role of standard setting is ... Financial inclusion: the role of the Basel Process 2012-11-09T15:55:00Z BIS Caruana Jaime Caruana PDF version http://www.bis.org/speeches/sp121109.pdf Jaime Caruana Caruana Mr General Manager Bank for International Settlements http://www.bis.org/speeches/sp121030.htm Remarks by Mr Stephen G Cecchetti, Economic Adviser and Head of Monetary and Economic Department of the BIS, prepared for the Second Conference of the European System of Central Banks Macro-prudential Research Network, Frankfurt, Germany, 30 October 2012. The concept of macroprudential regulation has been at the core of BIS thinking for three decades. BIS archivist Piet Clement believes that the term was first used internally in the late 1970s. He dates the first public use to a report published in 1986, where it is defined as a policy that promotes "the safety and soundness of the broad financial system and payments mechanism". Your research network's terms of ... The future of financial intermediation and regulation 2012-10-30T09:00:00Z The concept of macroprudential regulation has been at the core of BIS thinking for three decades. BIS archivist Piet Clement believes that the term was first used internally in the late 1970s. He dates the first public use to a report published in 1986, where it is defined as a policy that promotes "the safety and soundness of the broad financial system and payments mechanism". Your research network's terms of reference clearly echo this definition, stating that the primary topic of study is "macro-financial models linking financial stability and the performance of the economy". In my remarks this morning, I will take a step back from the detailed work that is the core of the research network's mission, and ask the question that I believe to be at the heart of the challenge we face today: What financial regulatory structure will deliver the right balance between growth and stability? The future of financial intermediation and regulation 2012-10-30T09:00:00Z BIS Cecchetti PDF version http://www.bis.org/speeches/sp121030.pdf Stephen G Cecchetti Cecchetti Mr Economic Adviser, Head of Monetary and Economic Department Bank for International Settlements http://www.bis.org/speeches/sp121002.htm Panel remarks by Jaime Caruana, General Manager of the Bank for International Settlements, Central Bank of Turkey/G20 Conference on "Financial systemic risk", Istanbul, 27-28 September 2012. Dealing with financial systemic risk: the contribution of macroprudential policies 2012-10-02T15:56:00Z There are important two-way interactions between macroprudential policy and other areas of public policy. These interactions put a premium on cooperative institutional frameworks that recognise the complementarities between policy actions. This means that, within a single jurisdiction, macroprudential authorities should be independent and should focus primarily on mitigating systemic risk while recognising that other policies will have an impact on the same objective. Cooperation between macroprudential policies across national borders starts from the high level set by various international regulatory standards and is improving with the explicit macroprudential frameworks recently introduced for countercyclical capital buffers and the higher loss absorbency requirements for systemically important banks. Greater cooperation, however, does not mean that we should disregard that individual policies have specific objectives and that some hierarchy of action is necessary. Dealing with financial systemic risk: the contribution of macroprudential policies 2012-10-02T15:56:00Z BIS Caruana Jaime Caruana PDF version http://www.bis.org/speeches/sp121002.pdf Jaime Caruana Caruana Mr General Manager Bank for International Settlements http://www.bis.org/speeches/sp120903.htm Speech by Mr Jaime Caruana, General Manager of the BIS, at the The Federal Reserve Bank of Kansas City's 36th Economic Policy Symposium on "The changing policy landscape", Jackson Hole, 31 August 2012 Policymaking in an interconnected world 2012-09-03T07:58:00Z Is there scope for greater international cooperation in monetary policy? The answer is "yes". The need for cooperation in financial regulation is taken for granted but, when it comes to monetary policy, the view is widespread that it is enough to keep one's own house in order. But the case for cooperation can be made by considering the following questions: whether exchange rate fluctuations can really insulate economies against contagion: whether global bond markets are isolated or integrated, and whether fallacies of composition characterise monetary policymaking. We conclude that monetary policy does require international cooperation, particularly when it provides the backing for financial stability. Monetary policymakers need to take further practical steps to complement their domestic analysis with a more global perspective. Policymaking in an interconnected world 2012-09-03T07:58:00Z BIS Caruana Jaime Caruana PDF version http://www.bis.org/speeches/sp120903.pdf Jaime Caruana Caruana Mr General Manager Bank for International Settlements http://www.bis.org/speeches/sp120730.htm Speech by Mr Jaime Caruana, General Manager of the BIS, at the 3rd Swiss National Bank - International Monetary Fund conference on the international monetary system , Zürich, 8 May 2012. Interconnections within the financial sector make international cooperation essential to monitor and respond to vulnerabilities. In order to detect, for example, common ... Interconnectedness and the importance of international data-sharing 2012-07-30T08:39:00Z Interconnections within the financial sector make international cooperation essential to monitor and respond to vulnerabilities. In order to detect, for example, common exposures to particular asset classes, or to gauge the ripple effects from the failure of a particular institution, information is required from the balance sheets of banks worldwide. Cooperation to promote international data-sharing has a long history at the BIS. The international banking and financial statistics collected by central banks and compiled by the BIS have evolved substantially over time, in response to the concerns of the day. The most recent crisis highlighted some limitations in the statistics, and forthcoming enhancements will address many of these. Interconnectedness and the importance of international data-sharing 2012-07-30T08:39:00Z BIS Caruana Jaime Caruana PDF version http://www.bis.org/speeches/sp120730.pdf Jaime Caruana Caruana Mr General Manager Bank for International Settlements http://www.bis.org/speeches/sp120724.htm Keynote speech by Mr Jaime Caruana, General Manager of the BIS, at CEMLA's 60th Anniversary Commemorative Conference on "Central bank cooperation at the beginning of the 21st century", 20 July 2012. In our complex and interdependent world there is, and will continue to be, a clear need for structured, institutionalised central bank cooperation. To be effective and legitimate, such cooperation must ... Central bank cooperation: reflections on the experience of the last eight decades 2012-07-24T12:09:00Z In our complex and interdependent world there is, and will continue to be, a clear need for structured, institutionalised central bank cooperation. To be effective and legitimate, such cooperation must continuously evolve. Since the interwar period, the evolution of central bank cooperation has been inherently linked to that of the international monetary and financial environment, with financial and economic crises serving as catalysts for change. This dynamic equally applies to the challenges and prospects ahead. Central bank cooperation: reflections on the experience of the last eight decades 2012-07-24T12:09:00Z BIS Caruana Jaime Caruana PDF version http://www.bis.org/speeches/sp120724.pdf Jaime Caruana Caruana Mr General Manager Bank for International Settlements http://www.bis.org/speeches/sp120625.htm Speech by Mr Stephen G Cecchetti, Economic Adviser and Head of Monetary and Economic Department of the BIS, at the 11th BIS Annual Conference, Lucerne, Switzerland, 21-22 June 2012. This year the theme of the 11th BIS Annual Conference is the future of financial globalisation. Anyone who has lived through the last five years must surely ask: Is globalisation ... Is globalisation great? 2012-06-25T08:23:00Z This year the theme of the 11th BIS Annual Conference is the future of financial globalisation. Anyone who has lived through the last five years must surely ask: Is globalisation great? Given the orientation of the BIS, we are forced to ask this question. In fact, I am led to ask two questions, namely: how much globalisation is good and how much finance is good. Over the next two days we will reflect on these questions. Let me give you my answers to my questions up front: financial deepening is great, but only up to a point. And, this means that the globalisation of finance is great, too; but only up to a point. Is globalisation great? 2012-06-25T08:23:00Z BIS Cecchetti PDF version http://www.bis.org/speeches/sp120625.pdf Stephen G Cecchetti Cecchetti Mr Economic Adviser, Head of Monetary and Economic Department Bank for International Settlements http://www.bis.org/speeches/sp120624a.htm Speech delivered by Mr Jaime Caruana, General Manager of the BIS, on the occasion of the Bank's Annual General Meeting, Basel, 24 June 2012. Five years after the start of the financial crisis, the world economy is still in a fragile state. This fragility is not primarily cyclical - rather, it reflects fundamental weaknesses shared by many countries. There has been progress in ... General Manager's speech: It's time to address the root causes 2012-06-24T15:30:00Z Five years after the start of the financial crisis, the world economy is still in a fragile state. This fragility is not primarily cyclical - rather, it reflects fundamental weaknesses shared by many countries. There has been progress in addressing these long-standing problems, but more remains to be done. This is why output in the advanced economies has barely returned to the levels reached at the outset of the crisis. General Manager's speech: It's time to address the root causes 2012-06-24T15:30:00Z BIS Caruana Jaime Caruana PDF version http://www.bis.org/speeches/sp120624a.pdf Jaime Caruana Caruana Mr General Manager Bank for International Settlements http://www.bis.org/speeches/sp120612.htm Speech by Mr Jaime Caruana, General Manager of the BIS, at the XXI International Banking Congress on "Banking business and banking regulation: strategies, results, prospects", St Petersburg, 6 June 2012 Progress and challenges in financial reform Progress and challenges in financial reform 2012-06-12T14:19:00Z The current global economic uncertainty makes it all the more important for us to follow through on strengthening financial reform. This will remove uncertainty and reassure businesses and households that the financial system is not at risk of another crisis. A number of broad principles guide this work. First, we need to have reliable buffers in the system, including capital, liquidity, sound infrastructure and strengthened resolution. Second, preserving financial stability involves a wide range of policy areas. Third, a globalised financial system requires global rules. And fourth, building a stronger system is not just a job for the public sector - the private sector, too, has an interest in contributing to financial stability. We all benefit from a financial system characterised by less leverage, better risk management, better incentives, less moral hazard, stronger oversight and more transparency. The key challenges in carrying forward this agenda are: first, implementing what has been agreed, especially with regard to bank capital and liquidity; second, completing the regulatory reform agenda, notably in the areas of resolution regimes, OTC derivatives, and the shadow banking system; and third, ensuring sound micro- and macroprudential oversight. Progress and challenges in financial reform 2012-06-12T14:19:00Z BIS Caruana Jaime Caruana PDF version http://www.bis.org/speeches/sp120612.pdf Jaime Caruana Caruana Mr General Manager Bank for International Settlements http://www.bis.org/speeches/sp120403.htm Speech by Mr Jaime Caruana, General Manager of the BIS, at the Morgan Stanley European Financials Conference, London, 27 March 2012. Is there really a conflict between shareholder value and the public policy goal of safer banks? The evidence suggests not, especially over longer time horizons. Bank shareholders also stand to ... Shareholder value and stability in banking: Is there a conflict? 2012-04-03T15:14:00Z Is there really a conflict between shareholder value and the public policy goal of safer banks? The evidence suggests not, especially over longer time horizons. Bank shareholders also stand to gain from the greater resilience of the financial system that regulatory reforms seek to achieve. Over time, the banks that have created the most value for shareholders have been those that performed well in both good and bad conditions. These tended to be less leveraged, they produced sustainable profits and kept risks and costs under control. Over the long term, only banks with a solid business model will generate sustained returns for shareholders. Shareholder value and stability in banking: Is there a conflict? 2012-04-03T15:14:00Z BIS Caruana Jaime Caruana PDF version http://www.bis.org/speeches/sp120403.pdf Jaime Caruana Caruana Mr General Manager Bank for International Settlements http://www.bis.org/speeches/sp120321.htm Panel remarks by Mr Jaime Caruana, General Manager of the BIS, at the Board of Governors of the Federal Reserve System 2012 conference on "Central banking: before, during and after the crisis", Washington, 23-24 March 2012. In order to reduce the risk of protracted weakness and accelerate the return to a self-sustained recovery, policymakers need to promote balance sheet repair and ... Central banking in a balance sheet recession 2012-04-02T15:10:00Z In order to reduce the risk of protracted weakness and accelerate the return to a self-sustained recovery, policymakers need to promote balance sheet repair and to avoid overburdening monetary policy. Extraordinarily easy monetary policy can buy time, but may actually make it easier to waste that time. It also gives rise to political economy risks that may ultimately threaten central banks' operational independence and their hard-earned credibility. A key challenge for central banks is to recognise these risks and limitations, to factor them into policy decisions and to communicate them clearly. Central banking in a balance sheet recession 2012-04-02T15:10:00Z BIS Caruana Jaime Caruana PDF version http://www.bis.org/speeches/sp120321.pdf Jaime Caruana Caruana Mr General Manager Bank for International Settlements http://www.bis.org/speeches/sp120216.htm Speech by Mr Hervé Hannoun, Deputy General Manager of the BIS, at the 47th SEACEN Governors' Conference, Seoul, Korea, 13-14 February 2012. In the wake of the crisis, demands on monetary policy have grown beyond recognition, putting frameworks under enormous pressure... Monetary policy in the crisis: testing the limits of monetary policy 2012-02-16T14:19:00Z In the wake of the crisis, demands on monetary policy have grown beyond recognition, putting frameworks under enormous pressure. Central banks are increasingly seen by market participants as all-powerful, able to intervene without any limit. The trend towards unlimited intervention combined with ultra-low interest rates does not only have potentially serious side effects on the functioning of the market economy. It also gives rise to three major risks and one ultimate possible consequence for monetary policy itself: these three risks are those of financial dominance, exchange rate dominance and fiscal dominance; and the ultimate possible consequence is an inflation surprise that could severely damage central banks' hard-earned credibility. To prevent these risks from materialising, we need to forge a consensus on what could be called "the new frontier of monetary policy" in order to refocus monetary policy on maintaining lasting price stability. This also implies that central banks should reject the market illusion of unlimited intervention and the associated theory of the "printing press". Monetary policy in the crisis: testing the limits of monetary policy 2012-02-16T14:19:00Z BIS Hannoun Hervé Hannoun PDF version http://www.bis.org/speeches/sp120216.pdf Hervé Hannoun Hannoun Mr Deputy General Manager Bank for International Settlements