the excessive debt burden in the non - financial sector and to improve competitiveness, building on last year ’ s achievements. in japan it is crucial to implement the third arrow of “ abenomics ” as the imf emphasized in its latest world economic outlook. china, which we will discuss in more detail over lunch, has embarked on a profound reform of the economic and social model in order to create the foundation for private sector - led growth in the future. so i welcome the emphasis the secretariat ’ s background note places on investment. the economic situation in the major oecd economies may differ significantly. however, with the notable exception of canada, lackluster investment has been a common feature. more of the same of ultra - loose monetary policy will be no solution to this problem. the agenda of the australian g20 presidency and ongoing work on the oecd level leave me confident that the work on fostering investment will continue during the year. let me conclude by posing three questions : • first, will private sector investment pick up this year and take over a central role in sustaining growth? • second, will monetary policy – where the required conditions are met – manage an orderly exit from its extraordinary measures? • third, will fiscal consolidation and structural policies be continued in a challenging political environment? if we respond with “ yes ” to these three questions at our meeting in january 2015, then 2014 will later be considered as a good year – the fourth condition of course being that germany wins the world soccer championship. thank you for your attention. * * * bis central bankers ’ speeches

. 10 this suggests the wiring of the interbank network is messy and dense. the network ’ s epicentre is a small set of large banks with a very large number of connections – “ superspreader ” banks. there are, in addition, a large number of peripheral banks with few connections. in other words, the interbank system has all the properties of a classic scalefree network. chart 7 looks at the pattern of interbank funding exposures among uk banks. it, too, suggests a complex web with scale - free properties. networks with these properties are prone to failures among the super - spreader nodes. since these are likely to be the entities most exposed to “ too complex to manage ” problems, this topology harbours a potential systemic vulnerability, the type of which was exposed in 2008. “ true cost of complexity in the banking sector ”, simplicity consulting ( 2012 ). it is taken from langfield, liu and ota ( 2014 ). exposures comprise unsecured loans, marketable securities, cds sold minus cds bought, securities lending and repo and derivatives exposures. bis central bankers ’ speeches complex interactions are not confined to the banking sector. the non - bank ( “ shadow ” banking ) sector has become increasingly important over recent years. in the us, estimates suggest it was broadly equivalent in scale to banking in the run - up to the crisis. at a global level, non - bank intermediation is currently estimated at around $ 75 trillion, around half of the assets of the global banking system. because many of these entities sit outside of the regulatory perimeter, data on their exposures and interactions is thin on the ground. but work in the us to map these interactions suggests they too are dense and complex ( pozsar et al ( 2010 ) ). chart 8 presents a stylised map of the shadow banking sector and its interaction with the banking sector. these interactions are highly complex and multi - layered. ( c ) complexity of macro - financial interactions the links and interactions between the financial sector and the wider economy are, in some respects, even less well mapped than the shadow banking sector. they, too, have evolved significantly over recent decades in scale and complexity. as an example of that evolution, chart 9 looks at a representation of the flow of funds between various sectors in the uk – companies, households, the rest of the world and government. it also shows the role of the financial sector in intermediating these flows of