infrastructure needs and investment bottlenecks in commodities production. fourth remark. we can identify two reasons for this situation : • the first is the general and exceptional uncertainty weighing on the global economy. uncertainty makes liquid and safe assets more attractive. it makes investment less attractive. it can therefore partly explain the phenomena that i have mentioned. • the second reason is more structural : a malfunctioning of our financial intermediation mechanisms. there are doubts about the solidity of banks in numerous countries. debt markets are profoundly disrupted and international movements of capital have been highly volatile over the last two years. fifth remark. the intervention capacities of central banks are of course limited. they can remedy temporary market disruptions and situations of illiquidity caused by uncertainty. recently they have intervened to an unprecedented extent, as reflected in their balance sheets. but they cannot permanently substitute financial markets and banks when financial intermediation malfunctions. likewise, low or zero interest rates can contribute to stabilising bis central bankers ’ speeches the economy in periods of crisis, but if maintained over a protracted period, they can create distortions, encourage the formation of bubbles and create risk for long - term investors. indeed, on this topic, i would like to make one observation. the question of monetary financing of deficits was raised by david thesmar. such financing cannot in any way resolve the problem of the dislocation between savings and investment, either at the national level or at the global level. some central banks have developed large - scale public debt acquisition programmes. they have done so for reasons relating to immediate macroeconomic stabilisation... to go beyond the zero - interest rate limit. the eurosystem as well intervened on a much smaller scale when malfunctioning debt markets prevented the effective transmission of monetary policy impulses. there is not a single central bank that is seriously considering the monetisation of deficits with the more or less declared intention of reducing the weight of debt via inflation. in my view, this notion is nothing more than a financial analyst ’ s fantasy. in fact, over the last six months, we have seen constant confirmation of the anti - inflationary stance of monetary policy with, for example, the fed actually establishing a quantitative definition of price stability for the first time ( in fact, identical to the one used by the eurosystem ). sixth remark. our immediate priority is therefore to construct or reconstruct the mechanisms and structures of a sound

order to fulfil the new requirements. but all our commitment will result in more transparent and more stable markets which will better serve all market participants in the future. 4. transparency is the crucial cornerstone of each regulation transparency is a very important issue within the entire regulatory process around otc derivatives markets. supervisors but also market participants need more reliable, transparent bis central bankers ’ speeches and accessible data on the derivatives markets. and they will profit a great deal from the reporting obligation to trade repositories established under both emir and dodd - frank. we expect reporting to trade repositories to work out next summer. the necessary technical details will be confirmed by the european commission soon and the registration approval process by esma will also start. but mifir, too, will increase transparency since it requires pre - trade transparency for derivatives traded on organised trading venues. the future findings from the data gathering will be helpful for further reviews of the regulation and possibly new regulatory efforts. 5. closing remarks european and national legislators have made good progress in regulating the otc derivatives markets. but further efforts have to be taken to complete the process embarked upon in the light of the g 20 commitments. the dialogue between regulators and market participants therefore must be continued and intensified. thank you for your attention. bis central bankers ’ speeches