stabilize development finance, not only price stability but also effective utilization of financing from advanced countries ’ banks is indispensable. facing the double trilemmas, an adequate combination of monetary policy and macroprudential policy is needed to achieve price stability and stabilize capital flows including those banks ’ loans, which will contribute to higher potential growth among emerging economies. bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches

macroprudential perspective is indispensable for maintaining financial stability while allowing for capital mobility. the chiang mai initiative – a multilateral currency swap arrangement among asian countries – and cross - border usage of collateral assets, which are eligible instruments for central banks, are notable examples of regional financial coordination to complement macroprudential policy of each country. in addition to global financial coordination, when considering macroprudential policy, global financial regulation is also a key factor. if the financial intermediation function of internationally active banks subject to macroprudential regulation is stable, then financing for development is also expected to be stable in emerging countries. during the asian financial crisis, u. s. and european banks filled lending gaps that japanese banks had left as a result of their withdrawal from the cross - border lending arena, whereas during the recent global financial crisis, these roles were reversed. this kind of substitution dirk schoenmaker ( 2011 ), “ the financial trilemma, ” economic letters, 111, 57 – 59. bis central bankers ’ speeches by internationally active banks may have somewhat mitigated the shortfall in financing for development in emerging countries. however, it ’ s not beyond the realms of possibility that all internationally active banks might cut lending simultaneously in the next crisis. it is desirable that as many internationally active banks as possible constantly maintain their lending without severe disruptions. to this end, global regulations are expected to play a crucial role from a longer - term perspective. finally, in relation to global regulation, let me share my views on an ongoing issue. last december, the bcbs ( the basel committee on banking supervision ) published a consultation document entitled “ revisions to the standardised approach for credit risk ”. in this document, it is proposed that the risk weight for corporate exposures, project finance, and equities be heightened. not a few market participants have sent comment letters to the bcbs, pointing out that a significant increase in risk weight leads to a decrease in banks ’ capital ratios, and the potential impact on financing for development can be huge. while i understand that the revisions proposed by the bcbs were made to reflect the experience of the last global financial crisis, a thorough cost - benefit analysis including an examination of the impact on financing for development is necessary. conclusion as the japanese case shows, the productivity effect of social capital is significant, and stable development finance supported by price stability contributes to an improvement in potential economic growth. in order for emerging countries to