loopholes that emerge due to financial innovation – this calls for a confident, strong supervision in the face of new developments that are not covered 1 / 3 bis central bankers'speeches by international standards. but another source of weakness of the international basel standards is insufficient implementation. i was recently discussing with my staff the implementation of basel iii in the eu. at some point, the discussion turned to the less than optimal experiences with the previous basel standards. some pointed out that the us did not implement the basel ii standard in full, despite having pushed for it in the first place. that led to the question how complete the implementation could be if other jurisdictions simply cherry - picked. but then i saw two colleagues whispering and laughing – and i asked what it was about. one of them, quite reluctantly, explained that it may be true that basel ii implementation in the us diverged from what the eu had hoped for – but that it was the eu which had been found to be materially non - compliant with the basel iii standard. the room suddenly fell silent. finally, someone asked : will it be different this time around? the purpose of this tale is not to blame and shame. my concern is rather to highlight where we are right now in terms of finalising regulatory reform after the financial crisis – and that the system of national implementation does not favour full implementation. so where are we? we are getting closer, we can already make out the finishing line. but the last leg of national implementation is a steep upward climb. without reaching the last milestone, basel iii would lose dramatically in value in terms of financial stability. what we need is complete implementation, nothing less : all internationally active banks – be they american, european, asian or from any other region – need to be subject to these minimum standards – otherwise we have failed to achieve a truly international compact. does this mean that, in future, every community bank should apply internal models to estimate its risk of credit valuation adjustment in derivative positions? of course not. international cooperation would reach beyond what is sensible. the basel rules are highly complex and call for big compliance departments – something that is beyond the reach of a community bank business model, for example. that ’ s why smaller institutions which are not internationally active should be subject to less complex rules. and that ’ s why the us and the eu have begun to reduce operationally burdensome rules for such institutions – a path that we are pursuing further, within the basel committee as well as in national implementation.

sabine mauderer : welcome speech - 15th anniversary of the deutsche bundesbank's representative office welcome speech by dr sabine mauderer, vice - president of the deutsche bundesbank, at the 15th anniversary celebration of the deutsche bundesbank's representative office, new york city, 24 september 2024. * * * check against delivery 1 welcome ladies and gentlemen : for me, it is always a great pleasure to be here. especially this year, as we celebrate the 15th anniversary of our trading office. since its inception in april 2009, the trading office has provided the bundesbank executive board with first - hand knowledge from wall street and beyond. i know for sure that its success rests on a network of exceptional people, namely you! therefore, i want to start with a big thank you to all of you, for your cooperation and trust over all these years. but before we move on to the fun part, let us look at what has happened in the markets since we last met in september 2023. 2 economic backdrop from an economic point of view, the world looked different a year ago. inflation in the euro area – and in the us too – was significantly higher. almost a year ago to the day [ sept. 2023 ], the eurosystem raised its key interest rates for the last time in the tightening cycle. in september 2023, the deposit facility rate reached 4. 0 percent. the tightening has done its part to cool euro area inflation. today, the eurosystem is well on the way to meeting its inflation target. in the us, we also see positive developments in this regard. inflation has decreased significantly, thanks to a series of interest rate increases. although us inflation remains above the fed's two percent target, things are heading in the right direction – just like in the euro area. in terms of economic growth, the us remains ahead of the euro area. while euro - area gdp grew by 0. 4 percent last year1, the us economy mustered 2. 5 percent growth2. as it stands today, the us is poised to outperform the euro - area economy once again this year – despite recent signs of a cooling in the us labour market. against the backdrop of lower inflation, central banks on both sides of the atlantic have taken steps to pare back the degree of monetary - policy restrictiveness. as expected, the fed last week [ sept. 18 ] decided to lower its target range for the federal funds