' efforts interest rate : 0 % - - the measure will fall under category iii ( applied interest rate : 0 % ) in the interest scheme to promote lending twice as much as the amount outstanding of funds that counterparties receive will be added to the macro add - on balances in their current accounts at the bank duration of fund - provisioning : 1 year ; rollovers can be made until the end of the implementation period → effectively, long - term financing from the bank implementation period : in principle, until the end of fiscal 2030

an international agreement like basel iii. but for this very reason, it is important that there be ongoing attention to the issue, in order to share ideas for action and monitor the steps various jurisdictions are taking to mitigate the risks. for example, we in the united states need to move forward with changes to money market funds and triparty repo markets to ensure that they do not serve as a trigger for wholesale funding runs. we also need to address further the issues raised by the dependence of some foreign banking institutions on large amounts of wholesale dollar funding. the responses to these issues may themselves involve a mix of national and international measures. a third priority is the area of otc derivatives, where strong capital standards alone are not enough to contain systemic risks. we know that otc derivatives dealers, as a by - product of that business model, become part of a global network of interconnected exposures. when one dealer in the network fails, as we saw in the case of lehman brothers, fear of losses at other dealers in the network can cause systemic stress. capital, which covers only a fraction of exposure, cannot alone prevent this contagion. to reduce the systemic risk of otc derivatives, the group of twenty ( g - 20 ) leaders have agreed to mandate that standardized otc derivatives must be cleared through a central counterparty. work in the united states is well under way to implement mandatory clearing. other countries have begun this work as well, but progress abroad has been slow to date. to help ensure that a global move toward central clearing of derivatives actually reduces systemic risk, it is critical that central counterparties in the derivatives market be very sound and stable. therefore, it is essential that the committee on payment and settlement systems ( cpss ) and the international organization of securities commissions ( iosco ) complete their important work on strengthening the oversight of central counterparties as soon as possible. to further build shock absorbers in the derivatives network, non - standardized derivatives that are not suitable for clearing should have margin requirements that are sufficient to prevent contagion when the next lehman fails. an international working group has been formed for this purpose. we hope to see considerable progress on this element of otc derivatives reform next year. institutional changes an audience of banking lawyers will appreciate the impact of the institutional features of international arrangements on the substantive output of those arrangements. in the time remaining this afternoon, i cannot do justice to this subject. but i do want to leave you with bis central bankers ’ speeches