the same capital requirements, banking union does not mean that every banking system has the same level of capital requirements. thus, capital requirements are determined through decisions taken by microprudential supervisors with respect to pillar i and pillar ii requirements, but also through the polices implemented by macroprudential authorities with respect to the other systemically important institutions ( o - sii ) buffer and the countercyclical capital buffer ( ccyb ), for example. another aspect of banks ’ capital requirements that is relevant is the minimum requirement for own funds and eligible liabilities ( mrel ), which is decided upon by resolution authorities. supervisors must therefore cooperate and coordinate effectively with macroprudential authorities and resolution authorities – whilst respecting their differing mandates – to ensure the resilience and stability of the banking system. borrower based measures third, borrower based measures such as loan - to - income limits ( lti ) and loan - to - value limits ( ltv ) make both banks and borrowers more resilient. increased co - ordination 3 / 7 bis central bankers'speeches wider institutional fora are important when thinking about the joint responsibility ‘ authorities ’ have for financial stability. these vary in composition and mandate at national level. 9 at european level, the esrb was established in 2010 to oversee the financial system of the european union ( eu ) and prevent and mitigate systemic risk. it is an important forum which brings together representatives of eu institutions, governors of national central banks, and high level representatives of the national competent authorities. 10 for the euro area, the macroprudential forum is composed of the governing council and the supervisory board of the ecb and it is a platform for regular, high - level discussions, bringing together microprudential and macroprudential perspectives from across europe. 11 the advent of macroprudential policy has therefore coincided with and reinforced an important change in thinking about microprudential supervision. this is embedded in our framework for supervision and our tools for stress testing. effective cooperation and coordination given the multi - level and joint responsibility is critical to preserve financial stability. resolution, financial stability and prudential supervision the establishment of national resolution authorities and the single resolution board has been an important institutional development since the crisis. however, the introduction of the bank recovery and resolution directive ( brrd ) and single resolution mechanism ( srm ) goes well beyond this, and has also had a wider impact on how we supervise banks. the brrd

, geometry, ratio and proportion ) : “ my method is nothing but an appropriate way of bringing order to the merchant ’ s fantasy, allowing him to gain an overview of all his affairs and to see easily whether they are in good shape or bad. ” it seems to me that these few words underscore the crucial role of knowledge and method in business administration and management. this was an attitude that became standard in the course of the following centuries but which must have been revolutionary at that time, a time characterised by a strong spirit of innovation. and what was certainly new and extremely modern was the approach we know today as “ quantitative ” in matters such as trade, which had until then remained far removed from any scientific concept. the sections that make up his “ summa ” are evidence of this : arithmetic and algebra, their use in trade, bookkeeping, currency and exchange, pure and applied geometry. j. w. goethe, wilhelm meisters theatralische sendung, book 2, chapter 8. bis central bankers ’ speeches in his biography of pacioli, emmett taylor sums up his work with these words : “ pacioli ’ s great contribution to civilization consisted of digging up old material on mathematics and putting it in shape for the use of modern students. he was the first in modern times to make a science out of mathematics. he accumulated the accepted knowledge on the subject and systematized and formulated it with reference to the discovery of general truths and the operation of general laws. ” 2 his teachings are still valid today, in more ways than one. it is now generally agreed by economists that the key flaw in macroeconomic models prior to the crisis was the omission of the balance sheets of various players in the economy – banks, households, businesses. the models were built on flows, with little or no attention paid to stocks. but it was precisely from stocks that the irregularities and hence the crisis arose. non linearities arise on a balance sheet when capital falls to zero and the agent goes into default. but i think luca pacioli was also one of the first figures in history to strive to create common standards for use in complex trade operations, requiring various parties to work together and the sharing of a common language, to the full advantage of economic development and therefore of the common good. * * * fast - forwarding several centuries to today, the consensus seems to be that if the crisis that began in 2007 has taught us anything, it is that there was