klaas knot : strengthening financial resilience - lessons from pittsburgh speech by mr klaas knot, chair of the financial stability board and president of the netherlands bank, at the bloomberg global regulatory forum, new york city, 22 october 2024. * * * good morning everyone. it could have been right here in new york city. that would have been fitting, as this city was, and still is, the center of gravity for global finance. but, as it happened, the us administration made a last - minute decision to pick pittsburgh as the venue for the g20 summit. we are back in the fall of 2009. less than a year earlier, when g20 leaders first met in washington dc, the world economy had been facing its greatest crisis in generations. at the pittsburgh summit, the memory of the crisis was still fresh. the fall of lehman. the rescue of aig. the race against the clock to prevent a total meltdown of the financial system. leaders from the 20 largest nations in the world had all gone through those fateful crisis days. they shared a conviction that this should not happen again. ever. they decided on a massive strengthening of regulation to address the weaknesses in the global financial system and to curb excessive risk taking. and they endorsed the mandate of the newly established financial stability board to coordinate and monitor progress. pittsburgh turned the tide. the rest is history. but it is an unfinished history. for sure, the reforms that were agreed in pittsburgh did substantially strengthen the global financial system. in recent years, markets have experienced several episodes of turmoil, and we have seen potentially destabilising failures of banks and non - banks. but the core of the system has held up relatively well. so, one interpretation is that the financial system has proved to be resilient. but that is not entirely true. take march 2020 for example. this turmoil was contained both through improved resilience and unprecedented policy actions. without the combined force of these policy actions, the reforms implemented since 2009 may have not been sufficient to stave off another financial crisis. and it's not only in 2020 that unprecedented policy actions were needed. in 2023 the fire brigade had to turn out again. so, we've made progress, but there is much left to do if we want a truly resilient financial system. one that can finance the economy through thick and thin without recourse to extraordinary support. furthermore, the financial system is evolving, and so

that's not the only reason. it is also important that authorities finish implementing the measures we've all agreed are needed to address existing vulnerabilities. vulnerabilities that could lead to the next crisis, if they are allowed to persist. this calls for maintaining our ambition as policy makers, and for law makers to take the agreed policies all the way through to implementation. i wish for us to have the determination and collaborative spirit that the leaders in pittsburgh collectively felt. let's work together to finish what we started. let's stay sharp, focused and committed to preserving financial stability. and where better to express that commitment than in the city that never sleeps. 3 / 3 bis - central bankers'speeches