the board of governors on its upcoming review of whether the liscc operating committee receives information that is sufficient to reach sound supervisory decisions. one subset of this system - wide inquiry will analyze regulatory capture – specifically, how divergent views are presented to decision makers at the board. the review is expected to take several months. effective supervision means tough supervision and demands a focus on large banks that pose systemic risk. bank supervisors cannot prevent all fraud or illegal conduct or forestall all undesirable behavior in large, complex financial institutions. but we can help create more bis central bankers ’ speeches resilient, less complex, and better managed organizations that promote, rather than undermine, financial stability. v. conclusion the federal reserve will continue to improve its supervision and regulation of financial institutions. we understand the risks of doing our job poorly and of becoming too close to the firms we supervise. we work hard to avoid these risks and to be as fair, conscientious, and effective as possible. of course, we are not perfect. we cannot catch or correct every error by a financial institution, and we sometimes make mistakes. but in my view, a good measure of the effectiveness of supervision is the improved strength and stability of banks since the financial crisis. thanks in part to enhanced supervision and regulation, banks “ have the ability to meet their financial obligations and continue to make a broad variety of financial products and services available to households and businesses even in times of economic difficulty. ” 12 i can promise you that we will always strive to improve and that we will work hard to earn and retain your trust. i look forward to taking questions. scott g. alvarez, regulatory rulemakings, testimony before the committee on financial services, united states house of representatives, april 8, 2014. bis central bankers ’ speeches

guy debelle : the global code of conduct for the foreign exchange market speech by mr guy debelle, assistant governor ( financial markets ) of the reserve bank of australia, at the fx week europe conference, london, 25 november 2015. * * * thank you for giving me the opportunity to talk to you tonight about two important pieces of work currently occurring in the foreign exchange market. first, i will summarise developments in fx benchmarks. second, i will talk about the global code of conduct for the foreign exchange market. but before that, let me step back and ask why is the work going on? the reason, as many of you are painfully aware, is that the foreign exchange industry is suffering from a lack of trust in its functioning. this lack of trust is evident both between participants in the market, but at least as importantly, between the public and the market. trust is the lynchpin of all financial market transactions. without trust, markets do not function well. 1 at an fx week conference earlier this year, 2 my colleague simon potter outlined the important role that the foreign exchange market plays in the global economy. we clearly need the market to be functioning as effectively and efficiently as possible. but for that to happen, we need to restore the trust in the foreign exchange market. fx benchmarks i will start by summarising the current state of play in fx benchmarks, reiterating remarks i made in sydney last week. 3 roberto schiavi has talked about this from a european perspective earlier today. from early 2013, concerns were increasingly raised about the integrity of fx benchmarks, particularly around the potential for market misconduct in the trading around the time of benchmark fixings. accordingly, the financial stability board ( fsb ) formed a group co - chaired by paul fisher of the bank of england and me to firstly analyse the structure of the fx market and the incentives that might promote inappropriate trading activity around a fix, and then come up with some potential remedies to address the problems we found. after talking to participants from all sides of the fx market around the world, in september 2014, we proposed 15 recommendations to reform the fx benchmark process, which were endorsed by the fsb. 4 these recommendations were in four main areas : benchmark methodology ; execution of benchmark transactions ; market conduct ; and guidance on reference rates produced by central banks. earlier this year, at the request of the chair of the fsb, mark carney, i chaired