the snb therefore regularly examines, first, whether the ccb needs to be adjusted. depending on how the situation develops, this might need to be an upward or a downward adjustment. second, the authorities are working on the specification of measures that would target risks in the area of affordability. monetary policy and the snb balance sheet : flexibility as the key factor in the case of the ccb, the snb plays an important role because it can make proposals for its activation, alteration or deactivation. however, this instrument does not have any impact on our balance sheet. by contrast, our monetary policy decisions as well as other measures aimed at stabilising the financial system are reflected in the composition and size of the balance sheet. accordingly, it is of key importance for the effectiveness of our measures in the fields of monetary policy and financial stability that we have the option of making flexible use of our balance sheet. there are therefore no statutory limitations with respect to the size or composition of our balance sheet. this flexibility played a major role in ensuring that we remained capable of acting during the crisis, even in very difficult conditions. it enabled us to fulfil our mandate of ensuring price stability and also of making a contribution to financial stability as part of this mandate. let me give you two examples of the way in which we make flexible use of our balance sheet. for topical reasons, i would like to start by talking about the creation of the stabilisation fund. the stabilisation fund, as we called it, was an undertaking which commenced in 2008 and was successfully concluded last year. what was involved? you will recall that in october 2008 a swiss big bank, ubs, was in substantial difficulties. financial stability was threatened and intervention by the authorities was absolutely necessary. consequently, the federal council, the swiss federal banking commission ( predecessor of finma ) and the snb decided on measures to stabilise ubs and thereby strengthen the swiss financial system. the core element in the package of measures was the stabilisation fund, which took over illiquid assets from ubs totalling almost usd 40 billion. the snb funded 90 % by granting the stabilisation fund an interest - bearing loan. for its part, ubs provided the stabilisation fund with equity corresponding to 10 % of the bis central bankers ’ speeches transferred assets. 1 moreover, to strengthen ubs ’ s equity, the swiss confederation subscribed to mandatory convertible notes in the amount of

is likely to have made a significant contribution to europe ’ s emergence from recession. meanwhile, economic growth in the us firmed and the economy in japan picked up perceptibly. on the other hand, concerns about a number of emerging economies increased. one of the factors resulting in more difficult financing conditions for emerging economies with structural problems was the announcement by the us federal reserve that it intended to reduce its securities purchases. overall, growth in the global economy in 2013 was weak and uneven, and remained marked by uncertainty. will this situation change in the current year? probably only to a limited extent. according to our assessment, although the cycle has probably bottomed out, the challenges remain formidable. i will now outline the international economic position in more detail. bis central bankers ’ speeches global economic outlook for 2014 in 2014, growth in the global economy is likely to be stronger than in 2013. nevertheless, regional differences will remain substantial. while relatively robust growth can be expected in the us, the signs are pointing to a modest and uneven recovery in the euro area. a slightly stronger economic momentum than in 2013 can be expected in the major emerging economies, but they will not attain former growth rates. we therefore anticipate that expansion in the global economy will be no more than moderate. however, the recovery remains subject to significant downside risks. this is still largely due to the european debt crisis. you may be wondering whether the debt crisis is not already over. the extreme risks have indeed been eliminated. reform programmes introduced in some euro area countries, progress achieved in creating a banking union and measures taken by the european central bank ( ecb ) have clearly brought about an alleviation of the crisis. but the crisis has not yet been overcome – which is hardly surprising, since structural reforms are also required if this is to be achieved. it is important to acknowledge the efforts that have already been made in this respect in the affected countries, and as an onlooker one should be cautious when making recommendations. yet there is broad consensus that additional structural reforms are needed and should be implemented consistently. such reforms should increase the growth potential of the countries affected and allow them to significantly and sustainably reduce their high level of unemployment and debt. additional efforts are also required in the banking sector. consequently, the bank review to be carried out by the ecb is extremely important. only a healthy banking sector is capable of supplying the economy with sufficient credit. however, risks also exist outside the euro area. the