over time the irish policy has been tailored to address 2 / 7 bis central bankers'speeches both the collateral ( lvr ) and serviceability ( loan to income ratio ( lti ) ) dimensions of borrower risk, with separate limits on each dimension for different categories of borrowers. the flexibility of the policy means the central bank can proactively respond to risks it sees in different segments of the mortgage market. the cbi commits to annually publish a review of the effectiveness and calibration of its macro - prudential policy. 2 in the bank of england ’ s case, they place a limit on high lti lending. this is seen as an ‘ insurance ’ policy, with the calibration currently set at a non - binding level. the aim of the measure is to prevent a deterioration in lending standards, not necessarily to actively lean against mortgage lending at present. 3 in a similar vein, the uk financial policy committee ’ s approach to setting the ccb is to maintain it at a positive, neutral level, and to stand ready to either raise or lower it in line with the committee ’ s assessment of aggregate risks to the system. 4 further the ccb is seen as an important signalling device – underlining the fpcs view on the evolving shape of systemic risk in the uk system. we should also consider the evidence and analysis of the imf and other international bodies which have reviewed macro - prudential experiences across a number of countries. 5 while few macro - prudential regimes have been tested through a full financial cycle, evidence suggests that macro - prudential policies have limited success in leaning against asset price and credit growth cycles, particularly during strong upswings. the key benefit of capital and borrower - based macro - prudential tools is from the buffers they create which help to build system resilience against potential shocks. regarding the shape of operating and governance frameworks for macro - prudential, there is no clear convergence on operating models and the sharing of responsibilities between different parts of government. however, there is a growing consensus on the desirability of : a clear assignment of the macro - prudential mandate and powers ; well - defined policy objectives that are modest as to what macro - prudential policy can and should achieve ; the need for high quality analysis and monitoring of systemic risks to support decisionmaking ; and transparency and accountability mechanisms that support policy legitimacy. taken together, these elements of a macro - prudential

equanimity and solidarity to the problems raised by the influx of immigrants who reach land in this area. hospitality, open - minded acceptance, rules, controls, law and order, and far - sightedness are closely related aspects of the attitude towards immigrants in search of better living conditions and a more advanced social and human context. today, more than ever before, globalization demands that we pay attention to events beyond our own borders, and not only in the economic field. immigration can be a positive force, particularly in view of the demographic problems facing us, and we should keep an open attitude towards it, provided its negative aspects are tackled and its legality is assured by creating the conditions required for security. 2. this morning, in lecce, i had time to consider the economic outlook for the regions of southern italy. today ’ s guests include representatives of the business world and the professions. firms, all firms, are indispensable and powerful forces of economic growth. a business culture, a drive to improve production techniques, innovate, and manufacture better goods with more value added are crucial for the progress of the productive fabric. although the south of italy has experienced periods of exceptionally fast economic and civil modernization in the past fifty years, it continues to be a national problem. the economy of the south has opportunities and potential. there must be a drive to accelerate the process and overcome dualism, with italy ’ s public institutions, corporate sector and social partners all contributing. the south of italy is hampered by poor infrastructure ; this shortcoming, and particularly the lack of transport and service networks, affects production, which is thus less competitive than in the regions of the centre and north. an additional boost for public works and infrastructure investment is likely to stimulate aggregate demand and create good prospects of recovery. an increase of productivity and competitiveness in the south of italy necessitates an efficient and effective public administration and conditions of safety and legality. moreover, a problem of solidarity exists between the regions of italy with regard to making good use of the institutional and functional forms of decentralization. the available labour force, particularly of young people, and the cultural and environmental resources of the less developed regions constitute a “ reserve ” that can be tapped for growth, to the benefit of the whole of italy ’ s economy and society. technical and scientific capabilities are crucial for governing transformation and avoiding marginalization. basic and applied research play a leading role in international competition, process and product innovation, and