andreas dombret : global reforms and the market economy system welcome address by dr andreas dombret, member of the executive board of the deutsche bundesbank, at the reception given by the deutsche bundesbank at the annual congress of the verein fur socialpolitik, frankfurt am main, 6 september 2011. * 1. * * welcome ladies and gentlemen, members of the verein fur socialpolitik, on behalf of the deutsche bundesbank, i would like to warmly welcome you to this reception. i am especially delighted to accept the role of host at the bundesbank ’ s reception once again this year. the bundesbank is a true friend and supporter of the verein fur socialpolitik – and not without a certain degree of self - interest. the bundesbank considers science and research to be fields of great importance, since the work of central banks is today – more than ever – research and knowledge - based. time and again, research work has been the starting point for central bank policy decisions. conversely, problems we are currently witnessing in the central banks ’ various areas of operation stimulate new research projects. moreover, central banks offer an attractive research environment. i am therefore convinced that a close exchange with research institutions and universities benefits all concerned. the bundesbank maintains contacts and works together with a wide range of institutions and academics at the goethe university. one such example is the institute for monetary and financial stability ; it is financed by the monetary stability foundation, which in turn is run by the bundesbank. but cooperation also takes place on a less formal level, for instance with the center for financial studies and the graduate school here in frankfurt, to name but two examples. 2. lessons from the crisis – comments on the g20 agenda the topic of this year ’ s congress is “ the order of the world economy : lessons from the crisis ”, and the scope of the programme demonstrates the range of the related questions and answers. what are the right lessons to be learned from the crisis? this question was the subject of debate even before the first escalation of the crisis, namely the collapse of lehman brothers in september 2008. initially, it was thought by more than just a few that technical improvements in financial market regulation – notably concerning the securitisation market – would be a sufficient response to the crisis. however, when the most severe global economic crisis in decades took hold in the autumn of 2008, two points became

this to this registry service. the central bank has in this regard been supportive of the integrated population registry service ( iprs ). the iprs has been a useful tool for financial institutions to validate the identity of their customers. we have asked all banks to utilise the iprs in their know your customer checks and mitigate fraud risk. the national digital registry will build on the iprs and provide an even more powerful tool for the financial sector and especially for smes. the central bank therefore stands ready to support this important initiative and work with the financial sector to utilise it. through the register, financial institutions will be able to meet the statutory legal and regulatory requirements for anti - money laundering ( aml ) and bis central bankers ’ speeches combatting the financing of terrorism ( cft ) and the common frauds in banks that we see every day. aml / cft has become an issue of global concern and mitigating measures are important to ensure the integrity of kenya ’ s financial sector. ladies and gentlemen : of importance also is the ease of access to credit. a central repository of personal and corporate information will facilitate banks in their credit risk appraisal. this should not only ease access to credit but also reduce the cost of credit given the lower search costs. finally the register will also reduce the risk of fraud particularly identity theft and reduce the operational cost of fraud to the financial sector. these are but a few of the benefits of the national digital registry that i can enumerate and also stress that personal and corporate information and identification in the national digital registry service is a major milestone in completing the financial infrastructure requirements in our country. i am sure that this will be a useful consultation forum and you can count on the central banks ’ support and together we develop a stable and vibrant financial sector. thank you. bis central bankers ’ speeches