While emerging market economies may have different timelines and priorities, rigorous training programmes need to be simultaneously pursued to ensure that the supervisors are able to fully understand and interpret the qualitative materials, and at the same time, are able to comprehend the broader supervisory issues and concerns. Ladies and Gentlemen, The benefits of Basel II cannot be fully realised if emerging countries do not have the necessary foundation for effective implementation. In reality, some developing and emerging countries still need to develop a more efficient and comprehensive legal, accounting, regulatory and market infrastructure. The challenge for the emerging economies is therefore to place high priorities towards establishing and strengthening the fundamental infrastructure. Without the proper foundations in place, this could pose impediments to the implementation of Basel II, in addition to inhibiting the proper implementation of cross-border regulations and the effective conduct of consolidated supervision. In emerging countries where the necessary infrastructure is already in place, supervisors need to look beyond the state of the current financial landscape, in the context of the globalisation of financial services, and integration with the international landscape. Against this backdrop, the appropriate regulatory framework for the banking industry, in particular, the future of cross-border supervisory arrangements, needs to be articulated. In this regard, it is also important to recognise that the challenge of cross-border banking in the context of the increased significance of international banks has far wider implications.

Erdem Başçi: Recent economic and financial developments in Turkey Speech by Mr Erdem Başçi, Governor of the Central Bank of the Republic of Turkey, at the press conference for the presentation of the October 2014 Inflation Report, Ankara, 31 October 2014. *  *  *  Original presentation is on the Central Bank of the Republic of Turkey’s website: http://www.tcmb.gov.tr/ wps/wcm/connect/47fed704-6c8d-48a4-9fce-458bc4bad30b/ER_Ekim_2014_Konu% C5%9Fma_%C4%B0ngilice.pdf?MOD=AJPERES&CACHEID=47fed704-6c8d-48a4-9fce-458bc4bad30b  Distinguished Guests, Welcome to the briefing held to convey the main messages of the Inflation Report. I will now present an overview of the report, which will be published on our website soon. The report typically summarizes the economic outlook underlying monetary policy decisions, shares our evaluations on macroeconomic developments and presents our medium-term inflation forecasts, which were revised in view of the developments in the last quarter, along with our monetary policy stance. In addition to the main text, the report includes six boxes entailing interesting and up-to-date analyses on various topics. For example, the report presents boxes that analyze how the determinants of bond flows into emerging economies change over time and the sensitivity of inflation to output gap and loans. Moreover, there are studies elaborating on current account fluctuations and current account deficit corrections, non-core liabilities, the correlation between capital flows and loan growth across a wide range of economies and the role of macroprudential measures in the elasticity of loans to capital flows. Titles of the boxes are shown on the slide. All of these analyses shed light on noteworthy issues in the Turkish economy.