reporting of transactions to trade repositories and higher capital requirements for non - centrally cleared derivatives. however, few jurisdictions have the necessary legislations and regulations in place yet. while the eu has made some progress with respect to the european market infrastructure regulation ( emir ), legislation in the us is still outstanding. in all jurisdictions technical standards and details are yet to be developed and actual implementation will take longer than originally planned. the delay and the lack of a robust global policy framework increase the probability of incomplete or inconsistent implementation of the agreed rules. 5. closing remarks lagging reforms – like in otc derivatives markets – show the need to continue exerting pressure on jurisdictions to push forward with financial sector reforms. accordingly, the focus at the global level is increasingly shifting from policy development to implementation monitoring. jurisdictions and authorities should be aware that they are under increasing scrutiny of the international community. for effective and timely national implementation of internationally agreed rules, political support remains essential. as i have argued, rigorous implementation monitoring by international bodies is indispensable for ensuring global level playing fields in financial market regulation and achieving the goal to counteract financial stability risks. i am looking forward to the ensuing panel discussion. thank you for your attention! bis central bankers ’ speeches

rigorous monitoring can contribute to ensuring a global level playing field. the results of numerous monitoring exercises are summarised in regular scoreboard and progress reports to the g20. in addition, international standard - setting bodies are stepping up their implementation monitoring instruments. to better coordinate the various bis central bankers ’ speeches mechanisms, the financial stability board, or fsb for short, and the relevant standardsetting bodies have jointly developed a coordinating framework. within this framework, six areas have been designated as deserving priority implementation and particularly intensive monitoring. i will now briefly address four of these priority areas – leaving out those dealing with sifis as another round table today is dedicated specifically to the regulation of sifis. a. basel framework first, the crisis made painfully clear that banks ’ equipment with capital and their liquidity positions were inadequate to withstand shocks to the financial system. the new regulatory standard basel iii will improve the resilience of individual banks with respect to both their capital and liquidity positions. basel iii allows some discretion in national implementation : for example, the transition period permits jurisdictions to determine how quickly they adopt the new rules – which will depend on both the state of the national financial system and the macrofinancial environment. moreover, as basel iii is an international minimum standard, jurisdictions might adopt tougher rules than the internationally agreed versions. considering the significant differences in the size of banking sectors relative to domestic economies and the implied potential consequences in case of bank failures, i believe this to be a sensible approach. at the same time, it poses the danger of inconsistent implementation and of raising prudential or level playing field issues. therefore, the basel committee on banking supervision ( bcbs ) will monitor on an ongoing basis the status of jurisdictions ’ adoptions of the basel rules, following a three - level approach : first - level assessments focus on whether the rules are adopted according to the agreed timelines while the second level deals with the content of the domestic rules. the third level extends the analysis of domestic rules to supervisory implementation at the individual bank level to assess whether they are delivering comparable outcomes. initially, third - level assessments will focus on the calculation of riskweighted assets across banks and jurisdictions. as the adoption of basel iii – in contrast to its predecessors – has been fully integrated into the political process, the commitment to implement the new rules is extremely high. europe is playing a pioneering role in the adoption process via the capital requirements directive iv. i am confident that the comprehensive monitoring by the