##cutors and partners outside the banking area. many new players and providers in the field of payment, clearing and settlement services are indeed non - banks with which central banks traditionally had little – if any – direct interaction. • central banks are increasingly concerned with the division of responsibilities and the allocation of risks between infrastructure providers and their clients. the responsibility for the safety of a payment, clearing or settlement system rests largely with the system operator. however, to the extent that participants in the system can take action to reduce risks that may have a bearing on the system as a whole, they should be given incentives to do so. for example, the margining systems of central counterparties should give incentives to participants to trade prudently. • central banks are increasingly involved in cross - border cooperation and information exchange with other central banks and authorities contributing to financial stability in order to obtain a comprehensive picture of risks and vulnerabilities and to identify appropriate and effective mitigating policy actions. • central banks have been intensifying their efforts to produce consistent regulatory and oversight standards on a cross - border basis. the core principles for systemically important payment systems and the cpss - iosco recommendations for securities settlement systems and central counterparties have been important steps in this direction. against this background, some further work needs to be done on the harmonisation of the oversight framework for securities clearing and settlement in the european union. the continuous absence of such a harmonised oversight framework generates a number of undesirable effects. however, after the recent ecofin decision, i am very optimistic that we will soon see the finalisation and adoption of the escb - cesr recommendations for securities clearing and settlement. • the relevance of collateral for liquidity issues has been clearly recognised by central banks. during the past ten years, central banks have – especially in the context of the committee on payment and settlement systems and other basel committees – focused jointly their attention on the use of collateral in financial transactions, including the cross - border use of collateral. 4 cooperation in this respect is very useful and, especially for emergency situations, i would think that central banks – by enabling the cross - border use of collateral – could make a positive contribution to financial stability. ladies and gentlemen, let me now close my introductory remarks by once again welcoming you all and by thanking all of those who have been involved in preparing this conference, in particular daniela russo and mark manning. cpss report on “ cross - border collateral arrangements ”, bank for international

john c williams : a time for bold action remarks ( delivered via videoconference ) by mr john c williams, president and chief executive officer of the federal reserve bank of new york, at the economic club of new york, new york city, 16 april 2020. * * * as prepared for delivery introduction thank you for the kind introduction. hello, from my apartment in manhattan. it ’ s a pleasure to be able to join you today, even under these extraordinary circumstances. i hope that wherever you are watching, you and your loved ones are safe and well. the outbreak of the coronavirus and the global pandemic have created an unprecedented situation. today, i want to talk about what that means for the economy and financial markets, and how the federal reserve bank of new york, and the federal reserve system as a whole, are responding to the challenges before us. my colleagues and i are dedicated to doing everything within our power to support the functioning of financial markets and help put the economy on a strong footing once this crisis is behind us. before i continue, let me give the fed disclaimer that the views i express are mine alone and do not necessarily reflect those of the federal open market committee or anyone else in the federal reserve system. the coronavirus pandemic has created circumstances we have never experienced before in our lifetimes. there ’ s hardly a community in the world that remains unaffected. i want to emphasize that this is first and foremost a public health crisis, and a human tragedy. it ’ s our doctors, nurses, and healthcare professionals who are on the front lines, fighting this disease and caring for those who are suffering. we owe them a great debt of gratitude. my sincere thanks is also with the grocery store workers, those in law enforcement and transportation, and everyone who continues to carry out essential work each day. the scale of the challenge the necessary actions taken to slow and contain the spread of the coronavirus are not only changing how we live our lives, but are also having a profound effect on the economy and financial markets, both here and abroad. although many people have drawn comparisons with the financial crisis of 2008, the current turmoil is fundamentally different from recessions of the past. the challenges before us do not stem from vulnerabilities at banks or the bursting of a bubble — i can only liken them to a natural disaster of global proportions. if we look back to february, the american economy was strong, with unemployment at historical lows.