harms their debt sustainability and therefore exacerbates the euro crisis, impacting the real economy and feeding back to the banks. a former us treasury secretary colourfully spoke of the need for a bazooka – a big gun – to sort out the crisis, by which he meant using a vast amount of money to convince markets the problem has been solved. but for countries with debt problems, they need to borrow more to afford the ammunition for the bazooka and their debt sustainability position gets worse. the room for manoeuver for ever tougher capital bis central bankers ’ speeches standards is therefore constrained. in this respect, the feedback loop will only be broken by investment, rather than borrowing, from outside the loop. thus, while the debate around firewall structures is normally about the sensitive issue of size, i would suggest that having sufficient operational flexibility in any new mechanism is an equally important objective. finding mechanisms for investment in banking systems without adding to sovereign debt must surely be a desirable policy goal to be considered carefully. this might be done through european firewall mechanisms or other structures. i was interested in the reported comments of hans - peter keitel, president of the federation of german industries, about the benefits of investment in ( rather than more loans to ) debtor countries such as greece. this seems a sensible initiative to be developed. investment in stressed banking systems would help break the feedback loop and provide commercial opportunities at the same time. let me conclude by once again acknowledging the good work done by the european banking authority in the current crisis. but let us also recognise the limits of further action on regulatory capital to address the crisis. we should use a breathing space to refine the policy instruments at hand in a way that can help break the feedback loop that is doing so much damage to all the member states of the eurozone. bis central bankers ’ speeches

sharon donnery : governing for the good – doing the right thing remarks by ms sharon donnery, deputy governor of the central bank of ireland, at the institute of directors chartered director programme graduation, dublin, 3 october 2024. * * * i am delighted to be here with you all this evening, and many thanks to eileen for inviting me, and to john for the introduction. i was where you were sitting just a few years ago. i remember how challenging, interesting and worthwhile it all was. and i personally found what i learnt on this programme, and who i met, invaluable to my role as a senior leader and as a member of our own board, the central bank commission. in today's world, i believe that in many ways the role of boards has never been more difficult ; but it has also never been more important. the internal and external complexity which boards must manage – from increasingly complex organisations to a challenging and rapidly changing external environment – has led to increased demands and higher expectations of boards and their directors. but it has also heightened the necessity of good governance, and in particular the crucial role boards play in managing the risks and steering the culture and strategic direction of their organisations. this is why institutions such as the institute of directors are so important, and why the role they play " educating, informing, and supporting directors to lead successfully ", is so necessary in instilling stakeholder trust and confidence in our organisations. 1 in this context, in my remarks today i thought i would outline from my point of view the importance of good governance and organisational culture – and try to answer a question i am often asked :'what does good look like? '. good governance, good outcomes my own experience in looking at and thinking about these issues comes primarily from the central bank's role in regulating and supervising the financial sector. and while i speak from that experience, the lessons apply much more broadly. for regardless of the sector or business model, the important role of good governance, risk management and culture is something that holds true. i firmly believe that good governance is the bedrock of successful firms – and that good governance leads to good outcomes. 2 and indeed in the central bank of ireland, our supervisory experience tells us that firms with good governance, culture and controls are much better set up for success – both in 1 / 6 bis - central bankers'speeches terms of growing safely as well as dealing with the risks facing them and their customers. on