by global developments for public debt management and its linkages with macroeconomic stability and strategies thereof, lessons and outcomes of product innovations as also market infrastructure for government bonds. given the span of issues intended to be covered during the conference, i would like to make a few general observations with focus on the challenges posed to policy making for emerging market and developing economies ( emdes ) in the area of debt management in the context of recent developments in the global economy as well as the way forward to manage the uncertainties which have become certainty in an interconnected world. recent global developments : risk and challenges for emdes 4. the current public debt management forum takes place against the backdrop of a still weak global economy, especially in advanced economies ( aes ) where growth in some countries still remains weak. indeed, the global financial crisis has dramatically changed the policy environment. risks – old and new – continue to dominate the outlook and new policy challenges are arising not only in macroeconomic policy but also in debt management framework, both for emdes and also the aes. 5. going a little in the past, we know the world economy was ambushed with full blown financial crisis in 2008 – 09 and the growth in world economy had slowed down markedly from bis central bankers ’ speeches 5. 4 per cent in 2007 to 2. 8 per cent in 2008 and further to around half a per cent during 2009. the crisis which erupted in the us and other aes with unravelling of sub - prime crisis soon traversed to the emdes, reflecting elevated inter - connectedness among countries in the backdrop of increasing external openness and cross - border financial flows. the growth in emdes also declined from 8. 7 per cent in 2007 to 2. 7 per cent during 2009. the governments across large number of countries had undertaken fiscal stimulus measures in order to contain the slowdown and revive growth, and this translated into steep increase in the government market borrowing. it was really challenging for debt managers, especially in emdes to complete the increased market borrowing in a non - disruptive manner. subsequently, the european sovereign debt crisis unfolded in which the elevated debt levels coupled with sub - optimal debt structure in some of the european countries ( i. e. high share of short - term debt and greater share of foreign investors ’ holding ) triggered a major rollover risk for these countries ( chart 1 ). 6. the contagion emanating from the european sovereign debt crisis coupled with elevated market borrowing requirement amplified the challenges for

the comptroller of the currency, and the federal deposit insurance corporation — to encourage banks to help meet the credit needs of the communities they are chartered to serve, including low - and moderate - income neighborhoods. to complement the work we do with the other regulators to write regulations and guidance implementing cra, the federal reserve system ’ s community development staff help banks understand and meet their responsibilities under the law. fed staff members also act as liaisons between banks and community organizations to identify local community development needs and solutions. i know that you all are very interested in the agencies ’ activities related to possible revisions to the current cra regulations. my colleague, governor brainard, who represents the board in our interagency cra discussions, will be speaking to you tomorrow, so i will leave it to her to discuss our efforts in detail. but i do want to express my support for an interagency effort to revise the regulations to promote clarity and consistency in our evaluations of banks, particularly in light of the changes in the way bank products and services are delivered. we value the cra ’ s role in meeting the credit needs of low - and moderate - income neighborhoods and want to be very careful that any revisions serve to strengthen the cra ’ s purpose. 1 / 2 bis central bankers'speeches i commend your dedication to ensuring that all americans have fair access to the economic opportunities that our nation offers. i hope you have a productive conference, and i look forward to our ongoing conversation about how the federal reserve can help. 2 / 2 bis central bankers'speeches