sector may arise especially from liquidity mismatch and leverage, which could adversely affect market conditions should risks materialise. priority should be given to policies that help build resilience by reducing liquidity mismatch, mitigating risk from non - bank financial sector leverage, and enhancing liquidity preparedness in the broader non - bank financial sector. international support for ukraine and most vulnerable countries we welcome the imf's continued support for ukraine, including the recently approved fully fledged lending arrangement. together with strong international support, the arrangement will be essential for addressing ukraine's immediate financial needs and in catalysing additional financial assistance. we note that all adjustments to the imf's lending policies and toolkit are uniformly applicable to those meeting the relevant criteria from the fund's broad membership. in view of rising debt vulnerabilities, support for vulnerable countries remains high on the international agenda. we welcome the first successful conclusion of debt restructuring under the g20 - paris club common framework last year and encourage debt treatments of other applicant countries to be finalised promptly. efficient creditor coordination and debt transparency remain key. we note strong demand for resilience and sustainability trust ( rst ) financing, following its successful launch in late 2022, and welcome the good progress achieved. initiatives to ensure the resource adequacy of the rst and the poverty reduction and growth trust should maintain the reserve asset character of claims on the loan and deposit accounts of these trusts. this is essential for contributions made by eu national 3 / 4 bis - central bankers'speeches central banks. however, we note that the channelling of special drawing rights by eu national central banks to multilateral development banks or individual countries would not be compatible with the eu's legal framework. supporting international cooperation and strengthening the global economy recent global shocks and geopolitical tensions have advanced the debate about reconfiguring global supply chains. while the increased resilience associated with less complex supply chains is desirable, a less integrated world economy also entails costs. it weakens the diversification of global production and, in particular, the efficient allocation of resources globally, which has an adverse impact on welfare across the world. geopolitical fragmentation may also affect the global economy via financial channels. the availability of external financing may be impeded, and lower foreign direct investment would hinder the diffusion of technology and thus productivity growth. all of these developments require our immediate attention ; however, we are not losing sight

sabine lautenschlager : cross - border banking since the crisis – lessons for supervisors statement by ms sabine lautenschlager, member of the executive board of the european central bank, at the 10 years vienna initiative - anniversary conference 2019, vienna, 27 march 2019. * * * the crisis has shown that the banking sector is deeply interconnected worldwide, and that a banking crisis can quickly spread from one country to another. it also laid bare a number of weaknesses in the global regulatory framework. but after long and tough negotiations, we agreed on the basel iii framework, which addresses most of the weaknesses found in global regulation. it will help make global financial markets safer by ensuring that global banks and banks with cross - border activities have to comply with a common framework of minimum capital, liquidity and risk management standards. the crisis clearly showed that supervision should not stop at national borders. and it also showed us that cooperation between home and host supervisors is key to understanding the risks banks are exposed to when doing business across borders. in recent years, cooperation between supervisors has increased significantly, on the back of new global and european standards for home / host cooperation. cooperation between supervisors has become natural ; in fact, it has become essential. this cooperation has been institutionalised via supervisory colleges and crisis management groups. standards now apply when information is exchanged between host and home supervisors, and when joint fact findings and assessments are due. and various criteria now apply when supervisors from different countries have to agree on joint action regarding banks. of course, it is easier to cooperate in theory than in practice. and it is easier to cooperate in normal times than in times of crisis. the vienna initiative was an important example of cooperation in crisis times. and with the vienna initiative 2. 0 in particular, we have seen how important it is to provide structures and platforms for home / host cooperation. it is undeniable that, in times of crisis, the interests of home and host supervisors may diverge. but without cooperation, it would be very difficult to maintain financial stability. breaking this kind of prisoner ’ s dilemma requires trust. but trust cannot be built over a few days of talks at the height of a crisis. trust requires us to understand each other ’ s priorities and constraints. and this takes time. in a way, this should be seen as an investment. as a supervisor, you should invest your time in building trust with other authorities. it will pay off. in practice, the fact that this lesson has