risks and responding to emerging threats to financial stability. the objective of the fsoc is to ensure coordination and information sharing across the various supervisory organisations in the us. voting members of the fsoc include the secretary of the treasury, the chairman of the fed, the chairman of the securities and exchange commission, the chairperson of the federal deposit insurance corporation, and representatives from other relevant authorities. 17 in the european union, the european systemic risk board ( esrb ) is charged with macro - prudential oversight of the financial system. voting members of the esrb include the president and vice - president of the ecb, governors of eu central banks, chairs of the three european supervisory authorities, a member of the european commission, and representatives of esrb advisory committees. the head of regulation from each member state and the president of the economic and financial committee are non - voting members. where the esrb identifies a significant risk it issues warnings to the relevant authorities, and where appropriate, recommendations for remedial action. the esrb recently recommended that five criteria regarding the macro prudential mandates of national authorities be set down in national legislation. bis central bankers ’ speeches first, central banks must play a pivotal role in macro prudential policy. there are several reasons for this. importantly, central banks have considerable analytical resources and technical expertise. in particular, they have staff that has expertise in analysing financial sector developments. moreover, they have oversight of payments systems and serve as lenders of last resort. finally, there are obvious links between monetary policy and macro prudential policy. second, it is essential that policy makers have access to information and data on the components of the financial system. this must include, for example, data on individual financial institutions and developments in payments and settlements systems. third, the macro prudential policy maker must enjoy independence. every now and then, macro prudential policy will have to be tightened to constrain the financial system during a boom. there will then no doubt be strong pressures from financial institutions and borrowers alike not to do so, and there is always a risk that political pressures will arise. for much the same reasons as monetary policy makers are independent, macro prudential policy makers must also be. fourth, good policy requires policy makers to be accountable. thus, the macro prudential policy makers should explain to the public, through regular reports and perhaps also to parliament or a parliamentary committee, what measures it has taken and why

: achievement and maintenance of macroeconomic stability, especially price and financial stability ; in addition, meeting the pre - requisites for the monetary union and creation of key institutions responsible for implementation of the eamu roadmap ; establishment of an efficient payment mechanism ; and, through macro - prudential regulation of the financial system. your excellency, ladies and gentlemen, the recent financial crisis has shown that although financial integration improves access to financial markets and the opportunities for risk diversification, it may also increase the scope for financial contagion effect across countries. in this regard, eac central banks must ensure that financial stability arrangements keep pace with the degree of financial integration ; strengthen supervisory capacity and financial sector resilience ; and, ensure adequacy of capital and liquidity buffers. ladies and gentlemen, financial stability requires a concerted effort by key stakeholders. it is therefore important for eac central banks to strengthen synergies with other financial sector players. but also we have seen the benefits of innovations in the financial sector for inclusive growth and reducing cost of doing business. to conclude, your excellency, ladies and gentlemen, i once again want to reiterate that the benefits of regional integration outweigh the challenges and that eac countries can overcome the challenges. the central banks in the region have a role to play in the transformation of the eac economies. consequently, the eac central banks have put their best foot forward to support the integration agenda during the 10 year transition window to the establishment of the eac central bank. to accomplish this, the eac central banks will harmonize their macroeconomic frameworks and policies and enhance internal capacities within the region. thank you, your excellency, thank you, ladies and gentlemen. bis central bankers ’ speeches