interview capital markets union : the role of equity markets and sustainable finance contribution by luis de guindos, vice - president of the ecb, on the occasion of the publication of the ecb report on “ financial integration and structure in the euro area ”, frankfurt 3 march 2020 the release of the ecb report on “ financial integration and structure in the euro area ” is an excellent opportunity to share some thoughts on the european capital markets union, or cmu project. well - functioning and innovative capital markets are essential in enabling firms, households and governments to access stable funding and saving opportunities that are vital for consumption, investment and, ultimately, economic growth and employment. one could even argue that the cmu is a common denominator across many – if not all – eu strategies and a pillar for strengthening the eu ’ s autonomy on the global stage. without progress towards a fullyfledged cmu, we will face significant difficulties in effectively addressing the global challenges facing the eu. further developing and integrating eu capital markets takes on even more urgency in light of the challenges posed by the united kingdom ’ s departure from the eu. last, but certainly not least, there are strong synergies between the completion of the cmu and the finalisation of banking union. though the world of finance may sometimes seem distant or arcane, it is more important to people ’ s everyday lives than many might think. for one, badly functioning financial systems have the potential to harm all of us – as the experiences of 2008 and beyond have shown. i will start with a short update on the progress achieved so far, and then turn to the way forward, focusing on two key dimensions in developing deeper capital markets : risk capital markets and sustainable finance. significant advances were made in the first phase of the cmu, but more can be achieved following its launch in 2015, the cmu agenda led to some important accomplishments. thanks to the efforts of the european commission together with the council and parliament, 11 out of 13 proposals from the original action plan were successfully adopted across a number of important areas, including insolvency frameworks, covered bonds, securitisation markets and the development of a pan - european pension product. these policies are expected to have very positive effects on the development and integration of eu capital markets, even though initial ambitions had to be scaled back in some cases in order to reach agreement among the co - legislators. while it will take time for the full impact of these measures to un

benny bm popoitai : prudential supervision of the financial system in papua new guinea speech by mr benny bm popoitai, mbe, acting governor of the bank of papua new guinea, at the seminar for external auditors of regulated financial institutions to cpa - png, port moresby, 7 april 2005. * * * my dear auditors, good morning. it gives me great pleasure to address your association once again. the purpose of this seminar is to enhance the bank of papua new guinea ’ s relationship with important players in the financial system, with respect to compliance with the bank ’ s reporting requirements to ensure stability of the financial system in papua new guinea. bpng, as a corporate statutory body established by the central banking act 2000 ( cba ), is empowered to supervise the operations of the licensed financial institutions, including commercial banks, licensed financial institutions, savings & loan societies, superannuation funds and life insurance companies. the primary function of bank, as the prudential supervisor, is to foster efficiency, maintain confidence and stability in the financial system. effective prudential supervision of financial system is an essential component of a strong economic environment because the financial sector plays a central role in mobilizing the necessary capital for private sector participation in the economy to stimulate economic growth. prudential supervision, however, cannot, and should not, provide an assurance that financial institutions will not fail. in a market economy, failures are a part of risk - taking and the objective of the bank, as the prudential supervisor, is to ensure that the number of failures and the resulting financial losses to depositors, policyholders and contributors, is minimized. financial crises are a serious concern and can be extremely costly – not only in terms of the direct cost to the government and taxpayers, but also in terms of foregone growth. the npf saga is a classical example. perhaps, the challenging part of prudential supervision and threat to stability in the financial sector in papua new guinea is the potential for corruption and blatant dishonesty creeping into our financial institutions, and the bank will have to ensure that there is zero tolerance to such behaviors. this is the reason why the bank requires individuals holding or intending to hold board, trustee and management positions to go through a vigorous ‘ fit and proper person ’ test before occupying responsible position in any financial institution regulated by the bank. the primary responsibility for the overall conduct of the financial institution is vested in the