effects, which should warrant a more reasonable regulatory treatment, was overlooked ; in at least two ways. first, abs sales are, from an aggregate perspective, a better way for banks to deleverage vis - a - vis credit supply restrictions. in fact, if many banks deleverage simultaneously by restricting credit, this will have an aggregate impact on the total supply of credit, which might end up in a credit crunch. in contrast, deleveraging through securitisation does not mechanically induce a credit supply restriction, even if many banks do it simultaneously. in fact, deleveraging through securitisation could provide banks with enough funding and capital to enable them to increase lending, or, it could help transforming zombie banks into active players in the economic recovery. second, there is considerable home bias in the loan portfolio of banks whereas diversification of assets and reserves across the euro area, something which is achievable through cross - border purchases of abs, could act as an absorber of asymmetric shocks. bis central bankers ’ speeches all this suggests that the next regulatory steps could justifiably give a more favourable treatment to abs. there seems to be a consensus among european authorities and market participants that simple, standard and transparent securitisations should have a beneficial regulatory treatment. speed is now warranted, also given the recent ecb announcement of an abs purchase programme, so as to decisively eradicate regulatory uncertainty. this recent ecb announcement on the launch of an abs purchase programme, although decided taking into account monetary policy considerations, is also a game changer in the reactivation of the abs market. it reduces the stigma carried from the aftermath of the financial crisis and it contributes decisively to put securitisation in the policy agenda. the inclusion of mezzanine tranches in the programme can effectively result in capital relief for originators. also, the existence of a european guarantee scheme ( possibly using european funds and with involvement of a supranational institution like the eib / eif group ) to help originators achieve a significant risk transfer at an affordable price can be justified under the current adverse market conditions. it is also important to stress that the focus on abs based on sme loans may be counterproductive. abs based on residential mortgages represent the bulk of abs issuance while capital relief associated with sales of these abs has also the potential to generate new sme loans. the above steps depend on us as policy - makers

rodrigo de rato : the imf in a changing world ( keynote address ) keynote address by mr rodrigo de rato, managing director of the international monetary fund, at the joint imf - bundesbank symposium “ the imf in a changing world ”, frankfurt, 8 june 2005. * * * thank you, mr. stark, for that opening and introduction. good morning – it is a great pleasure to be here today among this impressive gathering of experts from many countries. let me first thank the german authorities for graciously hosting this conference. their organization of this event is much appreciated. as you know, the imf was established about 60 years ago. the world economy has witnessed dramatic changes since that time. for instance, our membership has grown four - fold, from around 40 to 184. the world ’ s financial landscape has also been dramatically altered by the rise of private international capital flows. throughout the changes of the last six decades, the imf has continually evolved to meet the needs of its members and the international economic system. it is in that spirit of evolution and renewal that we meet today to discuss issues related to the international monetary system, financial stability and, more broadly, the imf ’ s role in the world economy. my remarks this morning may be conveniently divided into three sections : • the origins of the imf, addressing its purposes, objectives, and mandates. • main changes to the imf since its establishment, and the reasons for those changes. • some thoughts on the future role of the imf in the international monetary system. in going through these subjects, it is my hope that the developments and ideas in each section will provide useful context for your panel discussions later today. the imf and its origins we live today in a highly globalized and integrated world. however, some analysts may suggest that the global economy was actually more integrated at the end of the 19th century than it is now. in the first half of the 20th century, nationalism and protectionism disrupted this integration, setting off the great depression and contributing to world war ii. the imf – and the world bank, its sister institution – were established to restore an open system of trade and finance, help countries rebuild from the war and, in the process, hopefully build a new era of world peace and prosperity. against that background, a key part of the imf ’ s mandate today is the promotion and maintenance of monetary and financial stability, both in individual countries and at the