technology and financial innovation, and strong arguments were being made to the effect that open capital accounts would bring significant benefits. after all, ongoing real economic integration at a global level demanded at least some degree of global financial integration. in turn, freer capital movements, the ongoing cross - border financial integration, and the growth of private capital flows that followed undermined pegged exchange rates and thus contributed to the spread of flexible exchange rate regimes and inflation targeting in many parts of the world, but in the european union this development provided part of the rationale for a monetary union. the current international monetary system and the official part of the global financial safety net largely reflect the contours of the global economy as they were before global financial integration and private capital flows reached the level we have seen in this century. back then, the global macroeconomic problem was related to global current account imbalances and asymmetric adjustment. keeping your own house in order was in most cases both necessary and sufficient for maintaining economic stability in individual countries. imf facilities to lend to sovereigns of debtor countries facing balance of payments difficulties were the most important part of the global financial safety net ( gfsn ). the world we currently live in is different. financial imbalances in both net and gross balance sheets can be more important than current account imbalances and certainly were so in the build - up to the great financial crisis ( gfc ). this is a world of cross - border spillovers and spillbacks. it is a world where, for small and open economies ( soes ), keeping your own house in order is certainly necessary but no longer sufficient, at least not if we restrict ourselves to traditional demand management and prudential instruments. financially integrated small and open economies can still be overwhelmed by large and volatile capital flows driven by push factors. it is a world that needs additions to the gfsn, some of which we partly have – such as fx liquidity provisions to internationally active banks through central bank - swaps – but some of which we do not have. the international community is certainly aware of these issues. the imf has done good analytical work in this area and proposed reforms. work has been done under the auspices of the g20 looking at potential reforms to the international monetary sytem ( ims ), and currently the eminent persons group is working on a report to the g20 to be delivered at this year ’ s autumn meetings of the imf. but progress in

great dilemma is whether these institutions are making responsible decisions about economic policies, development programmes, operations and the achieved results ; • with regard to the long - term vision dimension, the great dilemma is whether the right directions and future challenges facing auditors are properly determined. hence, approximation of the auditing role with the best and contemporary international standards, learning about specifics and characteristics of the audited entities, and further bis central bankers ’ speeches intensification of inter - institutional cooperation during the processes are some of the elements having a key role in the work and results of this institution. in conclusion, i am fully confident that, by promoting the above - stated factors, the alsai will continue to perform at its best vis - a - vis the duties and challenges imposed by current developments and will succeed in accomplishing its mission towards the improvement of institutional governance. thanking you for your attention, i wish you success in your work in 2016. bis central bankers ’ speeches