inflation change materially, the conditional commitment would change. the only constant is that the bank will consistently set monetary policy appropriately in order to achieve the inflation target. conclusion to conclude, one lesson should be clear : policy matters. aggressive policies arrested the economic free fall triggered by the financial crisis. policy action is driving the initial recovery. policy - makers will have to act deftly to maintain stimulus long enough for private demand to take up the burden of growth, but not too long to undermine confidence in and the sustainability of that growth. even once that feat is accomplished, the aftermath of the crisis will make considerable demands on structural policies in all countries, including canada. recent events were a watershed. a powerful and sustained restructuring of the global economy has begun. canada is entering this period with many strengths, but the efforts required of us will be historic. our businesses will need to develop new markets as the traditional advantage of relatively open access to u. s. markets becomes less valuable. the bank of canada will continue to review, reflect, and report on the broader global forces i have outlined today. as i have reaffirmed, our principal contribution will be to consistently achieve our inflation target, so canadians can plan and invest with confidence.

to finalise and stabilise basel iii, not to open a new basel iv. the insurance sector has not been left out. the entry into force of the european regulatory reform solvency 2, also on 1 january, marks a profound break. we all know that “ solva 2 ” may still be improved ; but it is a significant step forward. in this respect, it is important that all institutions continue their efforts to improve governance and enhance the quality of estimates and data submitted to supervisors, in order to ensure an adequate monitoring of risks, in bis central bankers ’ speeches particular those linked to the persistence of very low interest rates. at the international level, other challenges lie ahead, notably the definition of systemic groups – it must be similar on both sides of the atlantic, like you i am sensitive to this –, harmonised capital requirements and resolution strategies. however, the soundness of the financial system does not depend solely on prudential regulations. it also depends on the confidence that economic players and the public, households and businesses, have in their financial system. in this respect, the efforts of financial institutions to protect their clients are essential. in 2016, what is needed is a firm implementation of the eckert law on dormant bank accounts and unclaimed life insurance policies, and greater freedom of choice of loan insurance on real estate loans. and, of course, more than ever, we need to step up the fight against money laundering and terrorist financing. new measures have already been taken, some are being strengthened. i expect from financial institutions – both insurers and banks – an exemplary participation in this fight. i know that they fully agree to the principle, but they must now carry it through in their daily management ; it is in your interest as compliance risk has become as vital, as strategic, as credit risk. may your institutions be strong on both fronts ; may our country be as involved in the economic battle as in the fight against terrorism, with the contribution of all of us ; and may each one of you remain vigilant and active, yet as serene as possible in 2016. thank you for your attention. bis central bankers ’ speeches