nout wellink : wim duisenberg, financial turmoil, fit and proper, need for financial education speech by dr nout wellink, president of the netherlands bank and chairman of the basel committee on banking supervision, at the opening of duisenberg school of finance, amsterdam, 15 september 2008. * * * introduction allow me to start with a short anecdote regarding wim duisenberg. as you know, wim was professor in macro - economics at the university of amsterdam. he obtained his phd in 1965 on “ the economic consequences of disarmament ”. the evening before the promotion ceremony his friend jan pen called him. after having a general discussion on the topic, he pointed out that wim had made a rather severe mistake on page so and so. as pen had spotted the mistake, he informed wim that he would question him during the day to come. pen persisted and indeed, the next day, during the ceremony he pointed out the mistake to wim and asked him what he was going to do about it. wim was summoned to answer to this accusation – and calmly replied : “ thank you, we will take this into account in the next print ”. wim duisenberg wim was, as this story points out, a man of science and of practicality. he cherished the high arts of financial theory as an imf advisor, but simultaneously relished the speed and actions that the financial system demanded, as minister of finance and as central bank president. it was in his position as president of de nederlandsche bank that wim made clear statements on his ambition to combine theoretical knowledge with practical expertise. he adamantly supported the transfer of the bank ’ s research department out of the dark and dusky vaults, shaping it into a more vibrant and policy oriented department. wim wanted to have the best minds within the bank at the disposition of those that had to take stands on practical policy decisions. the forged alliance could tackle any issue at hand. this was few decades ago, but wim was ahead of his time and quickly came to realize that having the best minds does not offer a singe packet solution to financial institutions, including to de nederlandsche bank itself. keeping your best people rooted in financial practice and education – one not without the other – was his core policy. current events & black swans wim was not on his own in wanting to have the best minds for his organisation. nowadays, many companies keep

or manager has the necessary professional qualifications, knowledge and experience to enable sound and prudent management. in dutch law regarding pension funds – pension fund governance – further elaboration has led to extensive overviews from within the pension sector on specific fitness issues. the ability to manage an organisation is an obvious one, as is having knowledge of applicable laws and regulations. financial education having said that, even if at the board level these issues are tackled properly, this is not sufficient enough. it is throughout the organisation that adequate knowledge and expertise has to be available ; the capacities of a board member on its own cannot be used to sign off for an organisation as a whole. financial education provides the means to realize fitness and propriety on every essential level in financial organisations and having a clear understanding of risks involved, of the need of integrity, structure and governance. conclusion concluding, this brings me back to wim duisenberg. wim was, as i mentioned, ahead of his time. his wish to combine financial theory and practice is reflected even more than ever in the current times, where uncertain events of differing magnitude force us to reconsider our own validation methods. the duisenberg school of finance bares witness to that. our partners, as we have seen and heard today, have given the clear commitment to invest in financial education, in future students and in a manner of education and research that outstretches the current limitations on financial knowledge. i cannot imagine anyone more suited than wim to lend his name to the institution that is officially opened here today.