, for example, the institutions have, in principle, to decide on their own initiative the basis of the valuation ; despite subjective elements, however, discretionary powers should not unduly restrict the comparability of the results because information on the quality of a loan book can be assessed to some extent independently of the valuation basis selected according to objective criteria. admittedly, there are other ways of assessing risk, as the example of japan has taught us. it is customary internationally and appropriate for different payment arrears in servicing debt to serve as a yardstick. furthermore, the comparable, because appropriate, use of discretionary powers when valuing assets is encouraged by the fact that, in principle, value adjustments on loans may be deducted from taxable profits. the banking supervisors are in favour of this. indeed, they regard it as an incentive to make appropriate risk provision in good time. by contrast, the absence of such an incentive may be a destabilising element in a financial system. japan is a good example of this, too. by the way, including value adjustments in tax assessment is also consistent with the principle of taxing on the basis of performance. having made these remarks of rather a national nature, i shall now return to international transparency. iv the basle committee on banking supervision, which was established by the central bank governors of the g - 10 countries as the committee on banking regulations and supervisory practices as far back as 1975, also issued statements on transparency and accounting as part of its core principles in 1997. the core principles describe the preconditions for an effective banking supervisory system. principle 21 requires, among other things, that “ the bank publishes on a regular basis financial statements that fairly reflect its condition ”. regarding accounts, it is said that “ market participants need access to correct and timely information in order for market forces to work effectively, thereby fostering a stable and efficient financial system. for this reason, banks should be required to disclose to the public information regarding their activities and financial position that is comprehensive and not misleading. this information should be timely and sufficient for market participants to assess the risk inherent in any individual banking organisation. ” the basle committee has since explained and amended its principles in various papers, the most recent being in october 1998. this was a consultation paper on the balance sheet treatment and valuation of credits and on the supply of information about credit risks in lending operations. a constructive relationship with iasc has also been maintained for some time in order

sabine mauderer : welcome speech - 15th anniversary of the deutsche bundesbank's representative office welcome speech by dr sabine mauderer, vice - president of the deutsche bundesbank, at the 15th anniversary celebration of the deutsche bundesbank's representative office, new york city, 24 september 2024. * * * check against delivery 1 welcome ladies and gentlemen : for me, it is always a great pleasure to be here. especially this year, as we celebrate the 15th anniversary of our trading office. since its inception in april 2009, the trading office has provided the bundesbank executive board with first - hand knowledge from wall street and beyond. i know for sure that its success rests on a network of exceptional people, namely you! therefore, i want to start with a big thank you to all of you, for your cooperation and trust over all these years. but before we move on to the fun part, let us look at what has happened in the markets since we last met in september 2023. 2 economic backdrop from an economic point of view, the world looked different a year ago. inflation in the euro area – and in the us too – was significantly higher. almost a year ago to the day [ sept. 2023 ], the eurosystem raised its key interest rates for the last time in the tightening cycle. in september 2023, the deposit facility rate reached 4. 0 percent. the tightening has done its part to cool euro area inflation. today, the eurosystem is well on the way to meeting its inflation target. in the us, we also see positive developments in this regard. inflation has decreased significantly, thanks to a series of interest rate increases. although us inflation remains above the fed's two percent target, things are heading in the right direction – just like in the euro area. in terms of economic growth, the us remains ahead of the euro area. while euro - area gdp grew by 0. 4 percent last year1, the us economy mustered 2. 5 percent growth2. as it stands today, the us is poised to outperform the euro - area economy once again this year – despite recent signs of a cooling in the us labour market. against the backdrop of lower inflation, central banks on both sides of the atlantic have taken steps to pare back the degree of monetary - policy restrictiveness. as expected, the fed last week [ sept. 18 ] decided to lower its target range for the federal funds