not displace, that of a firm's consolidated supervisor ( which, as i noted earlier, all systemically critical financial institutions should have ). under this model, the firm's consolidated supervisor would continue to have primary responsibility for the day - to - day supervision of the firm's risk - management practices, including those relating to compliance risk management, and for focusing on the safety and soundness of the individual institution. another key issue is the extent to which a systemic risk authority would have appropriately calibrated ability to take measures to address specific practices identified as posing a systemic risk – in coordination with other supervisors when possible, or independently if necessary. for example, there may be practices that appear sound when considered from the perspective of a single firm, but that appear troublesome when understood to be widespread in the financial system, such as if these practices reveal the shared dependence of firms on particular forms of uncertain liquidity. for example, while the existence of supra - normal profits in a market segment may be an indicator of supranormal risks, it also may be the result of innovation on the part of one or more market participants that does not create undue risks to the system. other activities that a systemic risk authority might undertake include : ( 1 ) monitoring large or rapidly increasing exposures – such as to subprime mortgages – across firms and markets ; ( 2 ) assessing the potential for deficiencies in evolving risk - management practices, broadbased increases in financial leverage, or changes in financial markets or products to increase systemic risks ; ( 3 ) analyzing possible spillovers between financial firms or between firms and markets, for example through the mutual exposures of highly interconnected firms ; identifying possible regulatory gaps, including gaps in the protection of consumers and investors, that pose risks for the system as a whole ; and ( 5 ) issuing periodic reports on the stability of the u. s. financial system, in order both to disseminate its own views and to elicit the considered views of others. thus, there are numerous important decisions to be made on the substantive reach and responsibilities of a systemic risk regulator. how such an authority, if created, should be structured and located within the federal government is also a complex issue. some have suggested the federal reserve for this role, while others have expressed concern that adding this responsibility would overburden the central bank. the extent to which this new responsibility might be a good match for the federal reserve, acting either alone

miranda s goeltom : macroeconomic impact of climate change – opportunities and challenges ( closing remarks ) closing remarks by prof dr miranda s goeltom, senior deputy governor of bank indonesia, at bank indonesia ’ s annual international seminar on “ macroeconomic impact of climate change – opportunities and challenges ”, nusa dua, bali, 1 - 2 august 2008. * * * fellow governors, distinguished speakers and chairpersons, honorable guests, ladies & gentlemen, on behalf of bank indonesia, i would like to express our most sincere thanks to all of you for the honor that you have just bestowed upon my invitation to participate in the annual international seminar of bank indonesia in our island of gods, bali. also, i would like to thank all honorable guest speakers, chairpersons, and participants for your valuable presentations and fruitful discussions during this one and a half day seminar held in such salubrious settings. in my belief, the sharing of views and experiences among central bankers, commercial bankers, academicians, bureaucrats, and the business community will enhance more productive policies with regards to global climate change phenomenon, to support sustainable growth in the long - run, as well as maintaining financial stability and alleviating poverty. my dear colleagues, distinguished participants, we have just completed an invigorating and very productive discussion. for the past oneand - a half day we have deliberated on a wide range of global issues related to climate change impact, in which all of them are import ant, some of them are crucial to the life of human being and the planet. we have been through the rigorous deliberations, and energetic but always friendly discussion. we also have summoned the spirit of this seminar and drawn inspiration to contribute within our own justification a better macroeconomic and financial stability in conjunction of global climate change. the evidence of global warming has become apparent as the consequence of human activities. we have learnt that it is not fiction or propaganda, but it is a fact and real. the costs of policies to address climate change can be contained by ensuring that mitigation policies are well designed. it will be crucial to aim at a framework that is sustainable and provides incentives for country participation. we have made just another step in the long journey of our inspirations to mitigate the global climate change impact. indeed, as has always happened, after every seminar that we convene such as this, we grow more unified in our thoughts, more coordinated in our actions, and more effective in participation