remarks let me conclude. international discussions to develop a new financial architecture and new rules which would prevent future crises are underway. however, new architectures and rules in themselves are not sufficient. there is no doubt that through advances in technology and innovation, financial products, institutions, and markets will continue to evolve rapidly. rules, especially global rules, which require due process before implementation, will inevitably be behind the curve. using expert judgment to adapt present rules to a new environment will always be important. no amount of rules can guide the ideal response among economic entities, especially against unforeseeable future events. central banks, through their skills and experience in macro economic policy as well as their unique position in financial markets, can help steer the policy debate in areas such as macro - prudential policy. central banks, with their macro - perspective towards both the real economy and financial system, expertise as plumbers of payment and settlement system, and real time market intelligence obtained from interaction from market participants can and must play a key role in preventing future crises. this also entails huge responsibilities for central banks and we will need to work extensively both individually and jointly to be in a position to fulfill such a role, together with other authorities. close cooperation with financial institutions and other market participants will also be crucial. thank you for your attention.

masaaki shirakawa : preventing the next crisis – the nexus between financial markets, financial institutions and central banks speech by mr masaaki shirakawa, governor of the bank of japan, at the london stock exchange, london, 13 may 2009. * * * ladies and gentlemen, i. introduction it is a great honor to have the chance today to present my views at the london stock exchange right at the heart of the city of london. this is the first opportunity for a governor of the bank of japan to speak in the city. let me extend my gratitude to the three hosts that have made it possible : international financial services, london, the london stock exchange, and the japan society of the united kingdom. they have all played and are continuing to play critical roles in the development of the city as the world ’ s premier financial center. both japan as a country and the bank of japan have had a close relationship with the city since japan entered the modern era. japan issued its first government bond here in london in 1870, only two years after the meiji government was established. this was to raise funds to build its first railroad between tokyo and yokohama, which naturally was built by a british gentleman, mr. edmund morel. the bank of japan was established in 1882 and its first overseas office was set up here in the city of london in 1904 at 120 bishopsgate. at the time of its establishment, assimilating expertise on modern banking business was essential for the bank of japan, and young staff members were sent to commercial banks here in the city as trainees. two of them returned to later become governor of the bank of japan. over the years, the chief representative of our london office has continued to report back to tokyo on developments in the london financial market which is an epitome of the global financial markets. reading the reports in our archives one cannot be but surprised by the fact that financial crises are not necessarily rare events. they have occurred quite often and unfortunately the lessons are also frequently forgotten. our most pressing challenge today globally is to resolve this crisis and to get the economy onto a stable growth path. but we also simultaneously need to think about how we can prevent the next crisis. on this point, the united kingdom is demonstrating its leadership as the chair of the g20, hosting and leading the discussions at the recent financial summit. in march, the financial services authority issued its turner review 1 which examines the factors behind the crisis and presents broad - based regulatory and supervisory