size, characterised by low loan - to - deposit ratios ; large shares of assets are held in the form of government securities and liquid assets ; lending is mainly short - term in nature, with about 60 percent of loans having a maturity of less than one year ; and market structures are typically oligopolistic, as indicated by the high share of total assets accounted for by the three largest banks, which tends to constrain the intensity of competition. i am highlighting these key elements of our financial system in sub - saharan africa, to ensure that we have context. the structure of our regional financial system and development should also play a role in informing and shaping our regulatory priorities. this context matters, particularly in light of the discussions we are going to have around proportionality of regulation and institutional reforms. furthermore, according to the report published by the imf i have just alluded to, the subsaharan africa banking systems were well positioned to handle the 2008 financial turmoil given : low leverage ; generally healthy capitalisation levels ; ample liquidity ; little reliance on external funding ; and limited or no exposure to either foreign and / or toxic financial assets. ladies and gentlemen, while the sub - saharan africa region was broadly able to weather the shock from the 2008 global financial crisis, without suffering severe banking failures as was experienced in other parts of the world, this is not a reason to be complacent. in the main, the banking systems in sub - saharan africa came under pressure indirectly via international trade linkages, as the global economic turmoil fed into reduced exports ; slower domestic economic growth and rising unemployment. this in turn adversely affected borrowers and contributed to increased default risk as well as higher levels of nonperforming loans. no one can claim to know the exact nature, origin and timing of the next financial crisis. we then need to ensure that we continuously strengthen and enhance our regulatory and supervisory frameworks to ensure that they are current and sufficiently robust. this is not necessarily aimed at reducing the probability of failure by individual institutions, the reform agenda is targeted at allowing orderly resolution of failing institutions in order to safeguard stability and depositor interests. financial sector regulation post the global financial crisis let me now say a few words about the overarching regulatory priority reforms that the g20 put in place in the aftermath of the global financial crisis. i will be quick to say that most of the policies are largely in place and – even more relevant to our gathering today – i will also touch on

areas. lower interest rates may provide short - term support. but they are no substitute for structural policy measures. to return to higher growth rates, innovations and digitalisation will be important factors. they provide opportunities for our two countries to increase efficiency and develop new business models. as a central bank, we are committed to ensuring price stability. this is our best contribution to favourable economic conditions that in turn can be conducive to the free flow of goods, services and ideas. indeed, price stability plays a key role. it is important because it preserves the currency's purchasing power, reduces economic uncertainty and creates a stable environment for investment and trade. price stability also makes an important contribution to political stability. as a contrast, global fragmentation increases the likelihood of future price pressures. if such pressures result in high inflation, this is a heavy burden, especially on low - and middle - income households. and it can lead to political instability – not least by influencing voter preferences. 3 aim for resilience far - sighted policies aim at resilience. during the pandemic, businesses and organisations have learned to become more flexible and resilient. they have adjusted their business models to better respond to unpredictable events, without abandoning their international focus. thus, as seen in the covid example, resilience means a combination of strengthening our economies and preserving openness and international interconnectedness. and preserving a " level - playing field " in global trade where possible. let us continue to build on this foundation together. 4 conclusion ladies and gentlemen, i firmly believe that we have much to learn from each other and can greatly benefit from mutual exchange. at the same time our corporates are not only business partners but in part also competitors. that being said, we have to find a way to ensure competition is fair and beneficial for both sides. by combining our strengths we can create a sustainable and successful future together. our task in the context of constantly changing global conditions is to address challenges – together! – and to identify potential and opportunities for a sustainable and resilient future. 3 / 4 bis - central bankers'speeches to this end, the common dialogue – like our's today – is invaluable! 1 the people's republic of china is again germany's main trading partner - german federal statistical office ( destatis. de ) 2 bundesbank monatsbericht januar 2024. 4 / 4 bis - central bankers'speeches