##ing that other studies published by the imf, but also the oecd, conclude that enthusiasm for reform in the euro area has fallen off significantly. 3 g20 agenda : free trade and financial market regulation ladies and gentlemen a number of the conditions needed for dynamic growth can only be created at the international level, however. one such condition are competitive markets which are enshrined in agreements and treaties that safeguard the free movement of goods, capital and services – and, in the european union, of labour as well. 3. 1 free trade and on that score, the outlook certainly grew dimmer last year. the uk government has now announced that it is aiming to leave not just the european union but the single market as well. as things stand, there is no visibility whatsoever as to whether, and if so, when the bilateral trade agreement the uk government is looking to conclude with the eu will come about, and what the contents of that agreement might look like. but even then, a likely outcome is that the united kingdom will end up having looser trade ties with the eu than 4 / 8 bis central bankers'speeches norway, which is – lest we forget – a member of the european economic area, or switzerland, which has concluded bilateral treaties with the eu. and the new administration in the united states is going so far as to make protectionist noises. elsewhere in the world, too, many people are mainly seeing the disadvantages which globalisation, and also technological progress, unquestionably entail for some. the advantages of free trade are drifting ever further out of focus – perhaps that is partly because they are less immediately apparent and harder to pinpoint than the drawbacks. but in my view, there is one thing we must not forget. open markets and a competitive economic system are qualities that underpin our prosperity. in terms of national economies, international trade is most certainly not a zero - sum game in which one country wins at the expense of another. it is safe to say that politicians and academics in the past neglected to devote enough attention to how it is precisely the less qualified members of the workforce who feel the competitive pressure stemming from international trade. that ’ s not to say that protectionism and insularity are a great deal of help here – especially since technical progress has much the same impact on lower - skilled workers in closed markets as well. the right course of action is to enable citizens to participate in the rewards of globalisation. better schools and universities

minds of bankers. a culture in which anything goes unless explicitly forbidden must not be allowed to be part of the future but should instead be banished to the past. we need a culture based on a quote from seneca : “ shame may restrain what the law does not prohibit. ” of course it was, in the end, only a few black sheep who gave an entire industry a bad name. however, we need a culture that transcends short - term yields to look at the bigger picture. banks have a responsibility to the economy and to society. once they fulfil this responsibility, they will regain public confidence. 6. conclusion ladies and gentlemen, the world of banks is changing. in my remarks, i have discussed various factors affecting the german banking industry ’ s path to the future. these include stricter regulation and european supervision, but also tougher competition. and it is not just competition within the banking market which is playing a role. technological progress is also creating competition entering the banking market from without. take, for instance, new electronic payment systems or crowdfunding. these are putting external pressure on banks ’ traditional business models. banks need to respond and to adapt their business models and it systems to the new environment. it is ultimately up to the banking industry to decide how far they wish to go in this situation. i am convinced that german banks have what it takes to prevail in future, as well, but they already have to begin today to address the challenges of tomorrow. we cannot regulate the banking industry ’ s path to a golden future ; this is where banks must assume a great deal of individual responsibility. bis central bankers ’ speeches let me close my remarks by quoting, alongside yogi berra, another famous american : “ change is the law of life. and those who look only to the past or the present are certain to miss the future. ” these words were spoken by john f kennedy. thank you very much! bis central bankers ’ speeches