in the euro area under the macroeconomic imbalances procedure. this new model is under development and still needs to be perfected – in particular in the financial sector, more work still needs to be done. that said, problems of regulatory arbitrage created by national level banking supervision are being addressed through an increasing harmonisation of supervisory standards and the establishment of a european system of financial supervisors with new european supervisory authorities. europe is also exceeding international benchmarks in transposing the new basel iii rules. we may be seeing the beginning of a euro area framework for banking sector recapitalisation and resolution with the decision to allow the esm to recapitalise banks in non - programme countries. indeed, a modest first step that will be followed by others in the future. conclusion to conclude, the euro area has learned that the original design of emu was incomplete, and is now working hard to complete it. for various reasons, the euro area is not in a position to adopt in the near term the institutions of a political federation. this means that it has to take a different road to increase overall stability and – in true european tradition – a sui generis approach is being developed that focuses on preventing imbalances and improving collective management of crisis. it is clear that this approach implies a loss of sovereignty. the crisis has proved that the euro area is a political entity which is not self - adjusting ; it needs to be actively governed, and this bis central bankers ’ speeches cannot happen without member states sharing more powers with each other. in other words, there has been a belated recognition that monetary union entails political union. this shift has profound implications for the involvement of all levels of governments in the european project : eu institutions, national governments, national parliaments, and even local governments are all required to participate in the common governance of the euro area. managing this process represents the next great challenge of european integration. bis central bankers ’ speeches

results are " not always bad and not always good. " i would have to agree that gentrification is complicated and requires thorough thought and planning as neighborhood revitalization strategies are developed. many strategies are being developed at the local level to address the increasing need for affordable housing ; these strategies include housing trust funds, private activity bonds, and community land trusts, to name just a few. the federal reserve bank of richmond is currently studying patterns of home price changes and gentrification in neighborhoods here in washington, d. c. the work is intended to assist city governments, community development corporations, and funders in anticipating and mitigating the effects of gentrification on lower - income residents. as difficult as the challenges seem, i am confident that if policymakers, researchers, and public and private community development practitioners continue to work together, they will be able to balance new investments with strategies to encourage affordable housing options for sustainable and equitable community development. in the meantime, my colleagues at the board of governors and i are committed to sustaining a noninflationary economic expansion and a healthy financial system, which should create a solid foundation for the development of new business opportunities. of course, although a strong economy and vibrant capital markets are necessary to establish a solid market - based foundation for economic development, they are not sufficient. successful community development projects require vision, commitment, tough choices, and hard work. indeed, these are the qualities that each of the projects honored here tonight share. i am pleased to be able to give my personal congratulations to tonight ’ s honorees and to social compact for leading the way in the effort to uncover the market potential of inner - city neighborhoods through innovation, risk taking, and the sharing of results.