a well - functioning macro - prudential framework needs the support of market participants, also in qualitative terms, as rigorous monitoring of systemic risks will require continuous market intelligence. contact with market participants will be essential for detecting important trends, such as growing financial imbalances, convergence of business models, similarities in investment strategies and innovations in financial instruments. information gathered via market intelligence could, for example, be valuable in capturing market developments and perceptions not yet apparent in the most recent data and complement more quantitative - based surveillance work. it will also allow combining accounting - based information on the banking and financial sectors at large with firms ’ risk management views and their perception of the main risks further down the road. as such, in setting up an effective eu - wide risk surveillance process, importance is being given to the establishment of a structured dialogue with the financial industry focused on financial vulnerabilities at the system - wide level. it could take place on a regular basis both among high - level representatives and at the working level. 4. towards a more stable financial system this brings me to the last part of my remarks today. the move towards a more stable financial system has been set in motion on a number of different fronts. i mentioned the enhancement of macro - prudential analysis and policy with a view to identify, in a timely manner, risks of a systemic nature and to respond with warnings or targeted policy measures to address them. this was at the centre of my talk, since this is where the esrb will play an important role in safeguarding financial system stability at the eu - wide level. another dimension that will be at the core of this conference today are the prudential measures to increase the resilience of the banking sector over the coming years so as to increase firms ’ ability to withstand shocks and to reduce the overall vulnerability of the system. these include measures of both a micro - prudential and a macro - prudential nature, forming a comprehensive package of capital reforms and the new global liquidity standard. banks loss - absorbing capacity will be reinforced by regulatory capital consisting of common equity and including two capital buffers : the capital conservation buffer and the countercyclical buffer, addressing macro - prudential risk in a time - varying fashion. market risk, counterparty credit risk and securitisation risk rules have also been revised to ensure that risks are adequately captured. to limit model risk and the build - up of excessive leverage on and off the balance sheet

variety of monetary regimes, abrupt swings in economic, politic and philosophy systems, and modern economics was amazingly refreshing, interesting, and thought - provoking. it certainly deserves more attention. our traditional approach to research has largely contributed to our understanding of monetary and financial stability issues and models with a large set of parameters, forecasts and shock analysis. it has enriched the envelope of models and methodologies that are available in the process of policy design and implementation and has increased our confidence. however, it is time to go deeper in the understanding the fundamental of economic behaviour as an individual and social phenomenon. this understanding requires, among others, proficient research in economic history and economic behaviour and economic welfare. i reiterate you do not have to do this alone and isolated. international scientific collaboration allows for increased access to research resources and infrastructure. teaming up with professionals with complementary skills, benefitting from knowledge generated beyond boundaries is a modern and effective endeavour. we hope this workshop as well as other conferences and activities we are hosting throughout the year will contribute to this end. i wish you great success during the workshop proceedings and in your everyday efforts. it is my hope that getting to know each other ’ s work will lay the foundations for further future cooperation. thank you! bis central bankers ’ speeches