as you know, the delta project, considered one of the seven wonders of the modern world, comprises different types of constructions, such as dams and dikes, that together protect the nation from the risk of flooding. similarly, the set of regulatory measures being developed by the basel committee will act together as a series of defences against risks to financial stability. we also need to agree on the height of the defences we are putting in place as this is linked to the overall level of protection we are aiming at. this will determine the appropriate level of capital. the official goal of the delta project is to reduce the risk of flooding. let this be an inspiration for us in our efforts to safeguard the stability of the financial system. mr trichet, thank you very much for your contribution. thank you for your attention. i wish you a stimulating and constructive discussion.

presidency of nout wellink will result, over time, in higher capital and liquidity requirements as well as in less leverage and procyclicality in the banking system. the proposals on these measures will be issued by year - end. the calibration will take place in 2010. their implementation will be phased in, taking into account expectations for the improvement of financial conditions and economic recovery. but even though this comprehensive package is an achievement, it does not imply that the work is over. the challenges related to finalisation of the package in the coming years should not be underestimated. these include assessing the interplay of the adopted and upcoming measures, and deciding on the overall level of capital in the financial system. what do you mean by the interplay of the various measures, will they complement or reinforce each other? there will be an important interplay of the various measures. we will undertake an impact assessment to analyse their cumulative effect. the aim is not to simply add - up the various measures, but to take into account their interrelation. we need to look at the measures already taken and assess how they combine with the upcoming changes to the definition of capital, the introduction of a leverage ratio and of countercyclical capital buffers. are you not concerned that these measures will hamper efficiency of the banking sector? we need to reach agreement on the overall level of capital in the financial system compared to pre - crisis levels, building on past and recent experience including national stress - testing exercises. in doing that, we need to strike a balance between a level of capital that promotes long - term financial stability without unduly compromising growth and efficiency of the banking sector. this will be no easy feat. we have challenging years ahead of us and i strongly urge the work of the committee to continue at full speed. we mustn ’ t loose either the momentum or the window of opportunity for reform. how will these new regulations contribute to strengthening resilience of the financial system? speaking towards an audience in the netherlands let me illustrate it with an analogy, drawing on a project well known to you. the dutch have through time developed the delta project – a series of defences to protect the stability of the nation, guarding it against floods. what we are trying to build is the delta project of the financial system that will protect it from risk excesses. if i may say, in this sense we are fortunate that the basel committee is chaired by a dutchman!