axel a weber : banking regulation keynote speech by professor axel a weber, president of the deutsche bundesbank, at the 9th munich economic summit, munich, 30 april 2010. * 1. * * introduction ladies and gentlemen the financial crisis, though in its third year now, still presents us with a great many challenges. nevertheless, while the number of challenges has not decreased, their nature has changed. with the stabilisation of markets and the onset of recovery, the focus has shifted from managing the current crisis to preventing future crises. and a cornerstone of this attempt to create a more stable financial system is the reform of banking regulation. as the field of banking regulation is highly complex and involves a host of technical details, i will limit myself to a brief overview of the current state of the reform process, highlighting some critical points. however, i am sure that the ensuing panel discussion will provide us with an opportunity to elaborate on some of the more technical details. 2. micro - and macroprudential aspects of regulation any attempt to create a more stable financial system should begin with the individual bank – that is, on the microprudential level of regulation. the relevant regulatory framework on this level are the basel ii rules, which have been implemented by a large number of countries. as the crisis revealed some shortcomings of the basel ii framework, the g20 commissioned the financial stability board to work towards a reform of the current rules. a first set of relevant measures was published in the summer of 2009 as a direct reaction to the subprime crisis. among others, these measures include stricter capital requirements for market risk and securitisation as well as heightened risk management requirements. additional proposals were put forward in december 2009. aiming at enhancing the resilience of the banking sector, major elements of these proposals include a new liquidity standard as well as a revised definition of capital. in the course of the current year, the relevant measures will be calibrated on the basis of a comprehensive impact study and be finalised by the end of 2010. although the envisaged reforms will strengthen the existing rules, they will not change their underlying principles. in essence, the basel ii framework seeks to limit banks ’ risk - taking behaviour by making it more expensive and thus less attractive. against this backdrop, recent proposals to prohibit certain risky activities altogether pursue a more radical course. one fundamental problem of such an approach is that the complete prohibition of certain activities is a very far - reaching market

andreas dombret : shared challenges, different perspectives, shared solutions? speech by dr andreas dombret, member of the executive board of the deutsche bundesbank, at the 13th high - level meeting for the arab region " banking standards and regulatory and supervisory priorities ", abu dhabi, 14 december 2017. * * * 1. shared challenges, different perspectives ladies and gentlemen, let me start by asking a question : why are we here? don ’ t worry, i won ’ t get too philosophical. of course, it only takes a quick glance at this meeting ’ s programme to find the answer. we are here to talk about “ global banking standards and regulatory and supervisory priorities ”. but if you compare the economies, the financial sectors and the supervisory institutional set - ups of different countries in the arab region, europe or elsewhere, you realise how different they are in many respects. yet about 150 people from 20 to 30 countries that apparently have little in common travelled all the way to abu dhabi for this conference. so why are we here? the reason is that, despite all the differences between our financial sectors and supervisory set - ups, the challenges financial institutions and supervisors face are surprisingly similar. i am convinced that when faced with complex challenges – some of them familiar, others entirely new – it helps to work together and take different perspectives into account. and given that all of you travelled here for this meeting, you and i clearly share this belief. over the next couple of minutes i will offer you my perspective on our shared supervisory challenges. first, i want to quickly remind us all how we got here – what lessons were learned from the global financial crisis and what has been done since then. i ’ ll also give you, of course, my own take on the finalisation of basel iii just last week in frankfurt. and last, i will touch upon current and future challenges we face, and how i think we should tackle them. 2. lessons learned and the post - crisis agenda the global financial crisis that erupted in 2007 has helped us to understand – better than ever before – that markets are not always efficient. on the contrary, financial markets have a tendency to exaggerate and so experience cyclical instability. you could say that tomorrow ’ s downturn builds up during today ’ s upturn, when optimistic market participants are deaf to sceptics ’ warnings. financial crises, we have to acknowledge, are an inherent part of the financial system. for regulators and supervisors this means that