( iosco ), published a report on “ recovery of financial market infrastructures ”. also last month, the financial stability board published a report on the key attributes of effective resolution regimes for financial institutions, which includes an annex dedicated to resolution regimes for fmis. together, these two reports are important milestones in strengthening the resilience of fmis, and of the financial system more broadly. today, i will focus on the importance of ccp recovery and resolution, and the challenges faced by ccps in designing appropriate recovery tools. i will also describe the specific role played by authorities during recovery situations, and mention the work that still needs to be done in the field of ccp recovery. bis central bankers ’ speeches recovery as a part of ccp risk management before i explain why it is important for ccps to have recovery and resolution tools, i would like to make it clear that these tools should only be seen as a way to complement regular risk management. in fact, recovery is the last step of a ccp ’ s risk management. the regulatory requirements relating to the safety and efficiency of financial market infrastructures defined under the cpmi - iosco principles for financial market infrastructures ( pfmis ) ( and national laws ) are already fairly strict and conservative. their aim, inter alia, is to ensure that recovery procedures will not need to be activated. in other words, if a ccp respects the requirements for risk management set out in the pfmis ( and national regulations ) – which i should add that overseers and regulators are closely monitoring – this should, in principle, be enough to preserve the ccp and its functioning. to ensure the pfmis are properly and comprehensively applied, cpmi and iosco have set up an implementation monitoring procedure covering 28 jurisdictions. two reports on the timeliness of the implementation have already been published and another work - stream will start shortly to assess whether jurisdictions have adopted legislation or policies to implement the pfmi ( level 1 ). the first assessments of the consistency and completeness of the principles ’ implementation ( level 2 ) for ccps and trs in the eu, japan and us will be released in early 2015. further l2 assessments will start at the end of the first quarter next year. in parallel, we have just initiated in all 28 jurisdictions an assessment of the implementation and application of authorities ’ responsibilities, with reports scheduled for autumn 2015. moreover, preparatory work is now starting for a level 3 assessment.

resilience : three lessons from the financial crisis1 speech given by dave ramsden, deputy governor for markets & banking inverness chamber of commerce 30 may 2019 with thanks to tom smith for his assistance in preparing these remarks and to staff across bank, including alex baiden from the bank ’ s advanced analytics division and nick bate and liam crowley - reidy from the bank ’ s monetary analysis directorate, for their many contributions, as well as my colleagues on the mpc for their helpful comments and suggestions. all speeches are available online at www. bankofengland. co. uk / news / speeches 1 introduction it ’ s great to be here in inverness, and to be speaking here this morning. my talk today is going to focus on resilience. the first definition of resilience thrown up by google is “ the capacity to recover quickly from difficulties ; toughness ”. it seems apt that i should be focusing on this here in inverness as scotland itself is a famously resilient nation. robert the bruce was taught resilience by a spider. scotland ’ s mountains epitomise geological resilience and tests the physical resilience of walkers and climbers. the scottish economy has been through some tough times, but proved relatively resilient during the financial crisis, with scottish onshore gdp falling much less than overall uk gdp. even the existence of the loch ness monster has proved resilient to continued scientific investigation. and resilience is a word that you hear a lot these days ( chart 1 ). psychological resilience is lauded as a virtue as life becomes more complex and challenging. ecological resilience is becoming increasingly prominent as the world comes to terms with the threat from climate change. in my role as deputy governor for markets and banking i ’ ve recently talked about the importance of resilience in the bank ’ s operations. 2 what i want to focus on today is economic resilience, by which i mean the ability of an economy to withstand and recover from unexpected difficulties – what economists call “ shocks ”. this is of particular relevance to two of the bank ’ s policy committees that i am a member of, the monetary policy committee ( mpc ) and financial policy committee ( fpc ). economic resilience is a subject i first really got chart 1 : google searches for “ resilience ” interested in when i became chief economic adviser at index : 100 = maximum the treasury in 2007. at this point the uk economy had