andreas dombret : reform of the global financial system opening lecture by dr andreas dombret, member of the executive board of the deutsche bundesbank, at the generation forum, eltville, 16 june 2011. * 1. * * introduction ladies and gentlemen, the reform of the global financial system will be in the limelight during the next two days of lectures and debates. i was asked to kick off the discussion by presenting you, in brief, the bundesbank ’ s point of view about the ongoing regulatory reform process. what has already been achieved, and what key issues still need to be tackled? 2. regulatory reform – what has been achieved? the global financial crisis has been keeping us extremely busy for some 4 years now. looking back, there is little doubt that an inadequate regulatory framework was one of the most important causes of this crisis. thus, it is imperative to learn the right lessons and minimise the likelihood of future crises by closing the regulatory loopholes and mending the weaknesses that have come to the surface. significant progress has already been made in this regard. therefore, i will restrict myself to mentioning only two key measures. firstly, the new capital and liquidity standards for the banking sector, commonly known as basel iii, were finally endorsed by the g20 at their meeting last november in seoul. capital requirements will rise considerably in terms of both quantity and quality. moreover, the firsttime introduction of global liquidity standards will bolster banks ’ liquidity cushions, thereby addressing the possibility of contagion via the money markets and excessive maturity transformation. all in all, the new rules will significantly strengthen the resilience of financial institutions. secondly, and related to basel iii, substantial progress has also been made in tackling the problem of how to deal with systemically important financial institutions, called sifis for short. as you all know, the striking feature of sifis is that their insolvency is regarded as virtually intolerable – because they are particularly large, complex or interconnected. or because they perform specific functions that cannot be readily assumed by other market participants. back at the seoul summit last year, the g20 accepted a comprehensive framework on how to address the sifi problem put forward to them by the financial stability board. work on specifying the framework ’ s individual recommendations is currently being pursued as a matter of urgency. the final framework will be spelled out in detail by the next g20 summit, which will take place

joachim wuermeling : brexit means brexit - but what does it mean for europe as a financial centre? speech by prof joachim wuermeling, member of the executive board of the deutsche bundesbank, at the annual reception of the association of foreign banks in germany, frankfurt am main, 20 june 2018. * * * 1 introduction ladies and gentlemen it gives me great pleasure to be able to speak to you today about the future of europe as a financial centre after brexit. there are three aspects which i would particularly like to address. the first of these is that banks looking to relocate their business to the eu or expand their presence here after brexit will be asked to satisfy the same minimum prudential standards that foreign banks already operating within the union and domestic institutions are expected to comply with. at the same time, we will need to find solutions that prevent any unnecessary additional expense. my second point is that in future, institutions that conduct cross - border business will be heavily dependent on how the respective supervisors oversee third - country institutions – as they will then be – and how the authorities involved will cooperate internationally. and third, when considering brexit, we tend to dwell on the negative side of things and think about how best to cushion the impact. as important and justified as these considerations are, we nonetheless need to continue to press ahead with our vision of a harmonised financial market in the eu – a digital financial centre of europe which offers as yet untapped potential. 2 leaving the single market means separate supervisory regimes two years on from the brexit vote, we can only assume that cross - border economic relationships look set to face noticeable headwinds going forward. for the financial markets, this means one thing : the financial services passport is dead. this immediately raises the question : could it be feasible to have something like a diet version of the financial services passport, or to perhaps create a range of exceptions? the clear answer to this is that there cannot be, nor will there be, any permanent exceptions. institutions that relocate operations to the eu or expand their presence here following brexit will have to comply with the same high supervisory standards that apply to the institutions that already operate here. this answer is underpinned by the fundamental belief that supervisors must be capable of intervening in the business activities of institutions operating within their own jurisdiction at all times. this is a sine qua non, and it should not be up for grabs.