particular activities some in the sector undertake. the biggest risks arise from combining high levels of leverage with holdings of illiquid assets and commitments to provide liquidity at short notice. in the current environment, those types of activities need careful monitoring, and possibly a deliberate policy response. conclusion there is no doubt that the reforms made thus far, along with a stronger framework for global co - operation mean we are in a better position to face new risks. but as we move to the next phase of post - crisis regulation, many commentators find it tempting to succumb to world - weary arguments. that any reform will be arbitraged that any insurance will promote risk taking that there is a trade - off between stability and growth bis central bankers ’ speeches and that there will always be financial crises. we were right to reject such fatalism when we embarked on reform and we are right to reject it now. while all recognise that future crises cannot be ruled out, the steps taken in the past six years have certainly reduced the likely frequency and severity of such crises. where banking systems have raised capital and restored trust in their creditworthiness, access to credit has returned. this central lesson from the us and the uk recoveries could not be clearer. publicly provided insurance is being removed from the system as the too big to fail problem is addressed and the public subsidy for globally systemic banks is eliminated. market forces are being restored. the system is more transparent. it is clear who bears risk. and the scope for arbitraging new regulation has been reduced through a global approach to reform that has established common standards and encompassed shadow banking. in short, any serious look at the experience of post - crisis reform shows that reform and regulation support – not damage – long - term prosperity. as i said in washington three years ago : in no other aspect of human endeavour do men and women not strive to learn and improve. the crisis showed that there was ample scope to improve the efficiency and resilience of the global financial system. through clarity of purpose and resolute implementation brisbane will mark an important milestone in our efforts. that we have reached this point is a triumph of the optimists. but we must not stop work. there is still much scope to improve. the process of reform is not over. we will continue to learn and adjust. and we must continue to manage the system effectively in the face of new risks. with that we can deliver the open and resilient financial system that can

emerge, reflecting factors such as a more favourable than expected macroeconomic environment, should be exploited to make faster progress with fiscal consolidation. at the same time, in countries where there is still a need to take additional specific measures to achieve consolidation targets, such measures should be adopted swiftly to ensure that consolidation commitments are fulfilled. this is a prerequisite for maintaining confidence in the credibility of governments ’ fiscal targets. positive effects on confidence can compensate for the reduction in demand stemming from fiscal consolidation, when fiscal adjustment strategies are perceived as credible, ambitious and focused on the expenditure side. the conditions for such positive effects are particularly favourable in the current environment of macroeconomic uncertainty. in order to support the process of fiscal consolidation, to underpin the proper functioning of the euro area and to strengthen the prospects for higher sustainable growth, the pursuit of far - reaching structural reforms is essential. major reforms are particularly needed in those countries that have experienced competitiveness losses in the past or that are suffering from high fiscal and external deficits. measures should ensure a wage bargaining process that allows wages to adjust flexibly and appropriately to the unemployment situation and losses in competitiveness. reforms to strengthen productivity growth would further support the adjustment process of these economies. we are now at your disposal for questions.