ons and other measures. to illustrate the difference this has made, in 2014 the correlation between srep scores and pillar 2 capital requirements was 26 % in the euro area. in 2016, it was 76 %. european supervision has therefore resulted in a substantial strengthening of shock - absorbing capacity within the sector. the total capital ratio of banks supervised by the ecb has increased by more than 170 basis points since early 2015. the quality of capital has gone up as well : the high - loss absorbing component – cet1 – now makes up the largest share of total capital of euro area banks. 1 / 4 bis central bankers'speeches specific weaknesses are also now being addressed in their entirety across the euro area. currently the most important issue here is tackling non - performing loans ( npls ). we all know the damage that persistently high levels of npls can do to banks ’ health and credit growth. internal ecb analysis shows that, over recent years, banks with high stocks of npls have consistently lent less than banks with better credit quality, therefore providing less support to firms and households. and though npl levels have been coming down for significant institutions – from around 7. 5 % in early 2015 to 5. 5 % now – the problem is not yet solved. many banks still lack the ability to absorb large losses, as their ratio of bad loans to capital and provisions remains high. we therefore need a joint effort by banks, supervisors, regulators and national authorities to address this issue in an orderly manner, first and foremost by creating an environment where npls can be effectively managed and efficiently disposed of. importantly, the development of european supervision has not only reduced the risk of individual banks failing. it has also – as we hoped – had some success in reducing the importance of location in perceptions of bank risk, because single, rigorous supervision is an essential precondition for the other pillars of the banking union that more decisively sever the banksovereign nexus. indeed, looking at the largest banks for which we have data available, the correlation between bank credit default swaps and those of sovereigns is now considerably weaker than at the height of the euro area crisis. still, there is no room for complacency, since these improvements are likely to have been driven, in part, by the improved economic situation. it is therefore crucial that further reforms to de - link banks from sovereigns do not lose steam, notably completing the other pillars of banking union. the benefits

lawrence williams : an evolving financial services landscape in the caribbean welcome remarks by mr lawrence williams, governor of the bank of guyana, at the 30th annual conference of the caribbean group of banking supervisors, hosted by the bank of guyana, georgetown, 24 may 2012. * * * chairman, caribbean group of banking supervisors, mr. ramnarine lal hon. minister of finance, dr. ashni singh, m. p. hon. minister within the ministry of finance, bishop juan edghill, m. p. deputy governor bank of guyana, dr. gobind ganga banking manager, mr. leslie glen conference delegates special invitees members of the media it is indeed an honour for the bank of guyana to host the 30th annual conference of the caribbean group of banking supervisors under the theme “ regional supervisory imperatives in an evolving financial services landscape ”. i wish to welcome all of the visiting delegates to our shores. i acknowledge the presence of the delegates from thirteen of the sixteen cgbs membership. though our region is small, we are geographically dispersed and travelling to some territories can be a bit of a challenge. i am therefore pleased at the representation and sincerely hope that your stay will be pleasant and memorable. i am also delighted to welcome to our shores and the conference the secretary general of asba, mr. rudy araujo, the chief representative of the bis office of the americas, mr. gregor heinrick, the senior international adviser of the comptroller of the currency, mr. lester miller and advisor on economic crimes in the us treasury department, mr. thomas noller. i have no doubt that your considerable experiences will add value to this conference. it is also fitting that i welcome the hon. minister of finance, dr. ashni singh and the hon. minister within the ministry of finance, bishop juan edghill. the importance of this conference is underscored by the fact that both ministers enthusiastically agreed to adjust their work schedules to be present at this opening ceremony with dr. singh consenting to deliver the feature address. delegates and invitees can expect a very insightful presentation by the minister. ladies and gentlemen, the theme of the conference refers to the evolving financial landscape which is quite evident in many tangible forms though not always easily manageable. as a matter of fact, the changing financial landscape has brought challenges almost every step of the way. it is a testimony to the quality of our regional banking supervisors and the support and nurturing provided by the caribbean group