european commission public consultation regarding an eu framework for crossborder crisis management in the banking sector. 11. lorenzo bini smaghi, member of the executive board of the european central bank, has the financial sector grown too big? 2010. 12. lucas papademos, european central bank vice president, “ financial integration, development and stability : lessons from the crisis ”, speech delivered on 12 april 2010 at the conference on “ financial integration and stability : the legacy of the crisis ”. 13. jean - claude trichet, european central bank president, ceremonial address at “ 100 years of confindustria ” delivered at parma, italy on 10 april 2010. 14. lorenzo bini smaghi, member of the executive board of the european central bank, “ monetary policy : recent experiences and future directions ”, speech delivered at the bank of canada, toronto, 9 april 2010. 15. group of twenty “ declaration of the global plan for recovery and reform ”, london, 2 april 2009. 16. group of twenty “ declaration on strengthening the financial system ”, london, 2 april 2009. 17. financial stability board “ progress since the st. andrews meeting in implementing the g20 recommendations for strengthening financial stability ”, 19 april 2010. 18. regulation ( ec ) no 1060 / 2009 of the european parliament and of the council of 16 september 2009 on credit rating agencies. oj, l 302, 17. 11. 2009, p. 1. 19. proposal for a regulation of the european parliament and of the council establishing a european securities and markets authority. brussels, 23. 09. 2009, com ( 2009 ) 503 final.

michael c bonello : nexus of basel ii and financial stability speech by mr michael c bonello, governor of the central bank of malta, at the annual seminar of the institute of financial services ( ifs ), floriana, 14 may 2010. * * * i would first like to thank the institute for inviting me to their annual seminar, which this year focuses on the topical, but complex subject of risk, capital and financial stability after the financial crisis. my remarks will concentrate on the lessons learned and on some open questions being addressed by international standard setters. in the introduction to his recent book “ good value ”, stephen green, the group chairman of hsbc holdings plc, recalls his thoughts one day in april 2008 on the shores of lake como against the background of an unfolding global financial crisis. he describes that time as one of those moments in history when it seems as if the tectonic plates are shifting, striking at the roots of what we had taken for granted for a quarter of a century. in his words, “ there has been a massive breakdown of trust : trust in the financial system, trust in bankers, trust in business, trust in business leaders, trust in politicians, trust in the media, trust in the whole process of globalization – all have been severely damaged, in rich countries and in poor countries alike. ” when i had addressed your annual dinner in november of that same year i expressed the view that the crisis would not be over until confidence and trust were restored and the credit channel started to function again. we are not there yet. we are still confronted by the farreaching consequences of the sub - prime episode, which now include a full - blown sovereign debt crisis. it is now clear that risks had been building up over a number of years. some derived from the fact that corporate governance, risk management, market infrastructures for derivative products as well as supervisory practices and regulatory frameworks had not kept pace with the process of financial innovation. others have been associated with an overly accommodative monetary policy at the global level, particularly in the united states. there is no doubt, however, that financial regulation and supervision proved inadequate. the initial trigger of the crisis was the securitisation of sub - prime mortgages and the associated originate and distribute model. these products found ready buyers, but there were significant misaligned incentives underlying the model. there were manifest conflicts of interest, originators and brokers had limited interest in ensuring continued monitoring