would agree that no monetary policy strategy should be set in stone. instead, it should adapt to changing circumstances, and circumstances have certainly changed over the past 18 years. in this sense, our current review should translate this strategy to the challenges of our time. 3 personal relationship otmar, with your firm commitment to monetary stability and central bank independence, based on your strong academic reasoning, you should serve as a role model for every central banker. and you have personally given me guidance and advice on numerous occasions as well. 1 / 2 bis central bankers'speeches even in my days as a student, i became well acquainted with your perspective by studying your textbooks. i preferred your books to others because they offered better explanations of the intricate interrelations of monetary policy and also introduced the reader to the challenges and issues of practical monetary policymaking. many years later, i had the privilege of working together with you personally. in the aftermath of the global financial crisis, you chaired the working group neue finanzmarktarchitektur. this working group was convened by chancellor angela merkel and was better known as the issingkommission. its task was to prepare the german agenda for dealing with the financial crisis for a packed series of g20 summits over the subsequent years. it was a very intensive and productive time that i remember vividly. today, i enjoy being able to exchange ideas about monetary policy and central banking with you – sometimes as a sparring partner. when we converse over the phone, i feel that we see many things from a very similar perspective, but what makes these exchanges so valuable and engaging is the sharpness of your intellect. and for this i offer my sincerest thanks. 4 conclusion although you already celebrated your 85th birthday a few weeks ago, i would nevertheless like to take this opportunity to wish you many happy returns as well as continued good health and vitality. your word carries weight beyond our country ’ s borders, even to this day. i hope that we will continue to hear your clear, credible, and authoritative voice in policy debate for many years to come. thank you and all the best! 2 / 2 bis central bankers'speeches

andreas dombret : long - term challenges facing banks in germany dinner speech by dr andreas dombret, member of the executive board of the deutsche bundesbank, at the bundesbank ’ s autumn conference “ achieving sustainable financial stability ”, berlin, 1 october 2014. * 1. * * introduction ladies and gentlemen it is a pleasure for me to welcome you to this year ’ s bundesbank autumn conference. in my view, the topic of this conference is well chosen. the crisis and the great uncertainties it has brought on have made the pursuit of financial stability all the more urgent. for this reason i am delighted that so many of you have been able to accept the bundesbank ’ s invitation to discuss this sensitive issue. this evening i would like to take a closer look, with you, at the long - term challenges facing german credit institutions. with more than 1, 800 institutions, the german financial system is the largest – in terms of sheer numbers – in the euro area. this large number reflects a special feature of the german banking system, namely that it is built on three pillars. alongside the private banks, many regional savings banks and credit cooperatives are in operation. in the crisis, these locally important institutions played a major part in stabilising the german economy, because they were less strongly affected by the financial crisis thanks to their traditional business model. nonetheless, all banks have felt the effects of a great loss of confidence since the financial crisis erupted in 2008 – they have lost the confidence of the general public, of trade and industry and of the interbank community. there are two major reasons for this loss of confidence. the first is uncertainty about how sound individual institutions actually are. the second relates to wrong investment advice in connection with securitisation products and certificates. more recently, confidence suffered again as information about banks ’ misconduct came to light – for example, the manipulation of reference rates such as euribor and libor or the legal violations that have often garnered so much attention from the media. the financial crisis and the subsequent loss of confidence have given rise to a major reform of financial regulation. basel iii is certainly the best known and most important of the measures designed to make banks more resilient by strengthening their capital and liquidity position. and many banks have indeed strengthened their capital position significantly over the past years. this elevated robustness is indispensable, as it was never possible at any point in the past to identify the specific causes