for which we should develop compatible rules and regulations? to keep it simple, let me suggest two. first, to maintain a healthy, responsive, and financially strong banking and financial system will facilitate the growing needs of our domestic economies. second, to build and maintain an adequate legal and regulatory structure will permit our institutions to compete safely on an equal and nondiscriminatory basis, both domestically and abroad. these thoughts may not sound original ; they ’ re not. they are essentially the two reasons the basle committee on supervision exists, and they underpin most other international efforts to coordinate banking issues. when i consider the past successes in coordinating international bank supervisory or regulatory policies, i think first of the bank for international settlements and the work of the supervisors ’ committee. after all, the bis has been the principal forum for developing international supervisory standards for banks in industrialized countries and, by their voluntary adoption, for banks and bank supervisors in other countries throughout the world. bilateral discussions can also serve useful functions either where particular issues are of concern or as a basis for subsequent broader dissemination. nearly a decade ago, such bilateral and - - through the bis - - multilateral efforts produced the risk - based capital standard, known as the basle accord. since then, we have produced numerous other policy statements dealing with sound risk management practices for banks. these statements related first to derivatives activities and most recently involve the management of interest rate risk. dr. padoa - schioppa, chairman of the supervisors ’ committee, has probably already discussed these initiatives with you. one of the committee ’ s most recent accomplishments, however, is the development of new capital standards for market risk in trading activities. that standard is notable because it reflects a new approach for constructing international banking standards. in particular, the internal models approach contained within that standard builds on leading industry practices and helps supervisors to promote risk management in banks. promoting sound risk management is a goal we should all pursue more aggressively in considering new banking policies and regulations. it is also the type of approach i had in mind when i said earlier that our laws and regulations should be compatible with underlying economics and market demands. to the extent we can continue building on “ best ” or sound banking practices in designing our rules and regulations, we will be working toward a common end. as we work together identifying those practices and deciding how to apply them as supervisory or regulatory standards, we will also be strengthening relations among ourselves that can prove invaluable in times of

##otheses as to the percentage of debt expiring and renewed in the short term. the top - end figure ( 6. 8 pp ) is the effect of all debt expiring in the short term being renewed. a firm is considered to be under high financial pressure when the ratio of ( gross operating profit + financial revenue ) to financial costs is less than one. the 12 - month euribor is the main benchmark rate for households ’ funding costs. the net interest burden is considered to be high when the ratio of ( debt service expenses - interest income from deposits ) to household income is over 40 %. on a global scale, an in - depth analysis is also needed of the recent banking turmoil from a regulatory and supervisory standpoint. the federal reserve system has now published an assessment of the reasons for the recent events in the united states. on the financial stability committee and the basel committee on banking supervision, we have embarked on an analysis of the recent developments, to enable lessons to be drawn. we should take an open - minded approach to the findings of these exercises, which generally allow us to fine - tune the regulations so that they can be adapted on an ongoing basis in response to changing circumstances. nor should we forget that in several jurisdictions the last leg of the regulatory reform – basel iii – is yet to be transposed into law. this regulation must be transposed completely and consistently so as to remedy the outstanding shortcomings, in particular in the definition of banks ’ risk - weighted assets. lastly, the short and medium - term challenges posed by the recent period of extraordinary crises do not detract from the pressing need to tackle the banking sector ’ s structural challenges, such as those linked to climate - related risk management, digitalisation and growing competition from tech firms.