world population in a network of exchange and growing economic prosperity. and we know from past experience in the 20th century that protectionism would be a recipe for economic disaster. conclusions more than ever, in the present very demanding circumstances, confidence is key. the global economy was hit in mid - september 2008 by an unprecedented abrupt loss of confidence. it was perhaps the first time in economic history that a single negative event was able, within a few days, to have a simultaneous and negative effect on all private economic agents in every economy, industrialised and emerging. this is why we are presently in uncharted waters, and the risk of abrupt economic and financial phenomena and unprecedented behaviour on the part of economic agents remains. public authorities, executive branches, and central banks must do all they can to regain, preserve and foster confidence among households and corporations to pave the way for sustainable prosperity. this calls for actions to be measured. we must maintain the appropriate balance between the need to take immediate action commensurate with the gravity of today ’ s situation and the equally undeniable obligation to return to a path that is sustainable in the medium to long term. confidence of households and corporations today depends crucially on their trust in the capacity of authorities to preserve the soundness and sustainability of fiscal positions in the years to come. confidence of economic agents today depends equally on their trust in the determination of central banks to preserve price stability – in europe less than 2 % but close to 2 % - in the medium and long run. it is essential to achieve this balance between the measured audacity of today ’ s nonconventional decisions and the credible determination to ensure a path that is sustainable in the medium and long term. exaggerated swings without perspective would delay the return of sustainable prosperity, because they would undermine confidence, which is the most precious ingredient in the present circumstances. europe can count on the ecb to continue to strike the right balance between audacity and wisdom, in line with its mandate. in acting in this way, the ecb will continue to offer a solid anchor of stability and confidence. thank you for your attention.

david carse : documentation risk, operational risk and the new capital accord speech by mr david carse, deputy chief executive of the hong kong monetary authority, at the asia pacific loan market association documentation launch, hong kong, 24 may 2002. * * * ladies and gentlemen, i am very pleased to be able to speak at this special luncheon to launch the aplma standard documentation. i am told that there has been an unprecedented demand to attend this event. i would like to think that this reflects my own attractions as a speaker. but i am realistic enough to recognise that the real star of the show is the documentation itself ; and your attendance here today reflects the level of interest in the outcome of the association ’ s hard work in bringing the first phase of this project to fruition. my purpose today is to stress the importance of good documentation and to place it in the more general context of the increased regulatory focus on operational risk that is a feature of the basel committee ’ s proposed new capital accord. i will also briefly describe the latest developments in the new accord and bring you up to date on the revised timetable. the work of the association it is over three years since i spoke at the inaugural luncheon of the association in hong kong. i said on that occasion that the association promised to become a vital part of the market infrastructure in hong kong. i noted particularly that the association could play a role in three main areas : by acting as an industry representative and interlocutor with regulators ; by establishing common standards and documentation ; and by promoting market transparency and efficiency. i am glad to say that the association has delivered on its promises in each of these areas. its website is, for example, now up and running, and is an important source of information for both members and non - members. if i could put in a plea, however, it would be for more market statistics to be made available on the parts of the website that are open to non - members - or honorary members such as the hkma. in its representational role, the association offered very helpful comments last year on the draft guideline that the hkma prepared on the management of the risks associated with syndicated lending. our initial draft generated a certain amount of heat. this was i think largely due to a feeling on the part of the industry that we had overplayed the inherent risks of syndicated lending. we therefore made it clear in the final version of our guideline - which we issued in non - statutory form