mario draghi : the turner review rollout remarks by mr mario draghi, governor of the bank of italy and chairman of the financial stability board ( previously financial stability forum ( fsf ) ), at the turner review conference, financial services authority ( fsa ), london, 27 march 2009. * * * the past eighteen months of crisis have been a learning experience for all of us. many had expressed forebodings about the build - up of risks and leverage ahead of the crisis – and i would count both the fsf, bis and the fsa in that number – but the weaknesses of risk management at major banks were so serious and pervasive as to defy even the more pessimists. authorities have had to re - examine their fundamental assumptions about how the financial system works, and draw conclusions for how to reshape regulation. lord turner ’ s review does an excellent job at both of these tasks. as we seek solutions to these immediate challenges, from a longer - term perspective we are revising our ideas about what regulation can do, what it cannot do, and what it needs to do. some say that we should avoid detailing how we will move to a more transparent, better capitalised, less leveraged system in the future and that to do so now would increase the burdens and uncertainties faced by banks in the present. i, and i think lord turner as well, would reject this view. to the contrary, as policymakers, while being fully aware about the time scale of implementation of these measures, we need to be as clear as possible right now about how we see the system evolving as we emerge from this crisis, if we are to rebuild confidence in the system among financial institutions, investors and the public at large. lord turner ’ s review lays out a sound, well argued case for revising our approach to financial regulation and placing such revision in an international context. many of these changes are fully in line with discussions and recommendations that have taken place in the fsf. this shouldn ’ t come as a surprise, since lord turner and callum mccarthy before him, and more broadly the whole of the fsa have made important contributions to these recommendations. i would especially emphasise : • improving the quantity and quality of bank capital, especially for the trading book ; • improved regulation and risk management of liquidity risk ; • a risk - based approach to compensation in the financial industry ; • counter - cyclical capital buffers ; and •

s radar and simply get a free ride on the safe and efficient payments infrastructure? no. if these payment services acquire a certain size, they will be subject to oversight by danmarks nationalbank. that also applies if the services are offered from other countries, as central banks have a long tradition of cooperation when it comes to oversight. * * * danmarks nationalbank has decided to set up a credit register in cooperation with the danish financial supervisory authority. a register of individual credits with information about the debtor, collateral, etc. will improve the basis for danmarks nationalbank ’ s oversight of financial stability and for the supervisory activities of the danish financial supervisory authority. we are aware that the credit register will involve a lot of work for the sector in terms of establishing the reporting system and regularly reporting information. but not only do we see the credit register as a prerequisite for danmarks nationalbank ’ s and the danish financial supervisory authority ’ s work to ensure financial stability, the establishment of the register will also help to ensure that denmark ’ s supervisory and oversight instruments are at least as good as those applied elsewhere in europe. the euro area has decided to establish a similar register from the end of 2016. obviously, the credit register will not relieve the individual bank of its responsibility for pursuing prudent credit policies, and in a market economy banks will differ – also in terms of credit policies. however, we would like to engage in a dialogue with you about the design of the standardised reporting, so that you have a useful tool for comparing your credits with those of the financial sector as a whole. we hope you will support this work. thank you. bis central bankers ’ speeches