Valeria Sannucci: Post crisis financial regulation - experiences from the two sides of the Atlantic

Keynote address by Ms Valeria Sannucci, Deputy Governor of the Bank of Italy, at a workshop, jointly hosted by the Federal Reserve Bank of New York and Bank of Italy, New York City, 30 November 2018.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Central bank speech  | 
10 December 2018

Ten years have passed since the default of Lehman Brothers, which was a turning point in the global financial crisis that had started earlier on, in the summer of 2007. The crisis spread rapidly from the structured products market linked to US subprime mortgages to all financial markets, and ultimately to the real economy, sparking the worst global recession since World War II.

The policy makers' reaction to these extraordinary developments was quick and remarkably well-coordinated. Central banks around the world rapidly lowered official interest rates, and injected liquidity in unprecedented quantities and through a wide range of monetary policy instruments. Fiscal policies became expansionary and supportive of the real and financial sectors, and more serious negative consequences were avoided.