product ( gdp ). after a short - lived rebound in 2014 that continued until mid - 2015, it fell back into recession in the third quarter of 2015 ( – 1. 9 % ). the rate of change in gdp remained negative ( – 1. 9 % ) in the fourth quarter, coming to – 0. 7 % for 2015 as a whole. underlying this new downturn were political instability from the end of 2014 onwards, the protracted negotiations with our creditors in the first half of 2015, the bank holiday and the imposition of capital controls, as well as the new fiscal adjustment measures under the new financial assistance facility agreement, considered necessary to achieve the revised fiscal targets. the strengths of the greek economy and of the domestic banking system were tested. however, the economy showed remarkable resilience, and the negative impact was more moderate than initially expected. this resilience is associated with the implementation of the adjustment programmes since 2010, which – in spite of several delays and missteps – have succeeded in sharply reducing the major macroeconomic and fiscal imbalances. more specifically : bis central bankers ’ speeches • the high fiscal deficit has been reduced, covering three quarters of the adjustment path towards the ultimate fiscal target ( for a primary surplus of 3. 5 % of gdp by 2018, compared with a primary deficit of 10. 1 % of gdp in 2009 ). • the current account deficit and the loss of competitiveness have been addressed, while labour market rigidities and constraints have been reduced, leading to an increase in exports. • there have also been signs of sectoral reallocation towards tradable goods and services and, more generally, towards the more productive businesses across all economic sectors. as opposed to the substantial progress made in recent years with fiscal adjustment, there have been delays with privatisations and the implementation of growth - enhancing reforms. these delays held back the beneficial effects on growth and employment, which only emerged in the course of 2014, with gdp growth returning to positive territory for the year as a whole ( + 0. 7 % ) and in the first two quarters of 2015. the recovery would have gained traction and the overall outcome for 2015 and 2016 would have undoubtedly been positive and stronger, in line with the projections, if it had not been undercut by heightened uncertainty from the last months of 2014 until a new agreement was reached with our partners at the euro summit of 12 july 2015. after a primary surplus of 1. 2 % of gdp in 2013

capital buffer rates. the esrb will follow up that guidance with a published assessment of implementation in 2016 q3. with macroprudential policy still in its adolescence, the esrb is helping it to mature. bis central bankers ’ speeches recent esrb studies have evaluated the case for using margining to counteract pro - cyclical behaviour in derivatives and securities financing transactions. and this year, the esrb assessed the value of including macroprudential buffers within the leverage ratio framework. the bank of england has followed this approach to ensure that the leverage ratio complements the risk - weighted capital framework in a way that makes it robust to cyclical and structural risks. one of the strengths of the esrb is its ability to harness data and conduct analysis across all eu member states. in its work on the leverage ratio, the esrb collected new empirical evidence showing banking sector leverage has been pro - cyclical at an aggregate level in almost all member states. average risk weights tend to fall in credit booms and rise in downturns. working with eba data, the esrb found that systemically important banks in europe typically have lower risk weights and leverage ratios than other types of banks. taken together, theory and evidence demonstrate the importance of a dynamic leverage ratio to a robust macroprudential framework. another way that the esrb has led in identifying best practice and influencing the international agenda has been to take a macroprudential perspective on how elements of the financial system can support long - term prosperity. for example, in its examination of solvency ii, the esrb has considered how long - term investors like insurers can bring diversity and stability to the system. in my view, more can be done to ensure that solvency ii creates the right framework for long - term investment. the esrb can provide a constructive and objective macroprudential perspective as an input to parliament ’ s review in 2018 of aspects of the operation of solvency ii. openness puts a premium on shared understanding of risks. the esrb plays a vital role for the eu, enhancing members ’ assessment of new and evolving risks. the structure of the financial system has changed significantly since the crisis. virtually all of the net credit growth since then has been from the bond markets. in tandem, the assets under management have risen by 60 % globally and 80 % in the eu. these trends will continue as the capital markets union is developed. the esrb is currently contributing in two ways to