Haruhiko Kuroda: Building a more robust financial system: where are we after the Global Financial Crisis and where do we go from here?
Speech by Mr Haruhiko Kuroda, Governor of the Bank of Japan, at the Deposit Insurance Corporation of Japan (DICJ)-International Association of Deposit Insurers (IADI) International Conference, Tokyo, 16 February 2017.
It is a great pleasure for me to be invited to the DICJ-IADI International Conference and to address all of you. Thank you very much for this opportunity.
It is almost ten years since the onset of the Global Financial Crisis. At this juncture, I would like to look back on the efforts and results at the global level with the aim of preventing the return of the Crisis, and offer my thoughts on the challenges ahead if we are to maintain the stability of the global financial system.
In retrospect, the Global Financial Crisis was triggered by problems in the U.S. subprime mortgage market. Initial losses incurred by financial institutions and investors in that market led to a severe liquidity shortage through loss of confidence among market participants. Subsequently, following the collapse of Lehman Brothers in September 2008, we had a full-blown crisis that destabilized the whole global financial system.