and under the constraints of a fast - moving market event, we conducted and published a “ sensitivity analysis, ” examining how institutions would fare in a prolonged downturn. the banking system remained well capitalized in the downside scenarios we examined. but in light of continuing uncertainty, we took several steps to preserve bank capital — and with it, banks ’ role as a source of economic strength. 10 we are conducting a second round of stress tests toward that same goal, with results announced before the end of this year. as our report shows, that strength is still intact. liquidity and capital remain high and, indeed, have increased at our largest banks over the course of the covid event. firms have sharply increased their reserves, setting aside resources today against losses they may incur tomorrow. banks are well positioned to serve as a bulwark against broader financial and economic stress. it is worth recognizing how things might have been different. this foundation would not exist, after a once - in - a - century shock, if not for a decade of work by officials and the banks themselves to make banks stronger and more stable, and to make banking supervision fairer, more efficient, and more transparent. those values are not contingent, fit only for an economic boom. they represent an ethic and a commitment — to addressing the most pressing supervisory and regulatory issues in the most effective ways — that are even more critical during a crisis. that ethic has steered the federal reserve through the last seven months, and it will continue to guide us through the recovery. it applies to our efforts to complete the implementation of basel iii reforms like the net stable funding ratio, tailoring them to the activities and risks of different institutions. it applies to our recent work to streamline the volcker rule and swap margin rule. 11 it applies to our assessment of the lessons of the covid - event shock, understanding which parts of our regulatory framework functioned well and which need improvement. 12 it applies to our international engagement, to ensure that global financial rules do not splinter and fragment as we gradually return to normal. 13 covid - 19 changed many aspects of the federal reserve ’ s work. it also affirmed the values and priorities that remain the same — those that will continue to guide us in our support for the financial system, the economy, and the country, long after the covid event has passed. thank you for your time. i look forward to answering your questions. 2 / 4 bis central bankers'speeches 1

janet l yellen : welcoming remarks speech by ms janet l yellen, chair of the board of governors of the federal reserve system, at the “ monetary policy implementation and transmission in the post - crisis period ”, a research conference sponsored by the board of governors of the federal reserve system, washington dc, 12 november 2015. * * * it is my pleasure to welcome you to the federal reserve board ’ s conference on “ monetary policy implementation and transmission in the post - crisis period. ” the conference aims to bring together academic and central bank economists, financial market practitioners, and policymakers to stimulate debate and research on a topic that is critically important to the federal reserve ’ s mission of conducting monetary policy in the pursuit of maximum employment and stable prices. the global financial crisis had profound effects on our economy, and it altered the way many think about monetary policy. at the peak of the crisis and during its immediate aftermath, unconventional monetary policy measures were designed and implemented by the federal reserve and other central banks around the world. the post - crisis period has offered policymakers an opportunity to assess a range of novel policy and operational issues associated with the conduct of monetary policy and the effectiveness of different policy options. specifically, policymakers have to carefully weigh the advantages and disadvantages of alternative monetary implementation frameworks in the presence of new policy tools. moreover, policymakers should be mindful of new channels for monetary policy transmission that may have emerged from the intricate economic and financial linkages in our global economy that were revealed by the crisis. finally, it is crucial to understand the effect of regulations and possible changes in financial intermediation on monetary policy implementation and transmission. the impressive conference program covers the following topics in three sessions : monetary policy implementation, the transmission of monetary policy, and the effect of regulation and financial intermediation on monetary policy implementation and transmission. the presentations and discussions of the 12 academic papers on the conference program will surely provide a foundation for what i expect will be a stimulating discussion of important topics over the next two days. looking ahead to later today, i am delighted that vice chairman fischer will deliver keynote remarks on the exchange rate mechanism in the transmission of monetary policy. tomorrow the conference concludes with two interesting policy panels on the effect of regulations on monetary policy and the “ optimal design ” of monetary policy in the post - crisis world. let me also say that i consider the topics covered during this conference highly relevant for the federal reserve system ’ s ongoing efforts to evaluate potential long - run monetary policy