a declining trend of the overall number of fund supported programs over time, i. e. fewer new and follow - up arrangements. to be clear, we do not object that there are legitimate cases which require access to the fund ’ s resources. however, the fund ’ s financing role should and can only be catalytic. in that respect we also have to enhance our efforts to involve the private sector in crises prevention and solution. the prolonged use of fund resources is hardly in line with the fund ’ s mandate, that speaks of “ making the general resources of the fund temporarily available ” ( imf articles of agreement, article i ( v ) ). countries that run imf supported programs over many years or even decades are probably not a demonstration of success. thus, the major role of the imf should be to prevent that imf financing becomes necessary and to make it redundant over time for countries. when performing the financing role, however, negative feedbacks on the intended international public good in the future must be avoided. there has been a controversial discussion to what extent large imf financing packages have caused moral hazard and thus undermined the functioning of the market mechanisms, i. e. whether the crisis solution in one case has actually prepared the ground for the next crises. to conclude : 1. official international organizations may play a well founded and systematically meaningful role, supplying public services, that are not profit - oriented and therefore would not be attractive to, or performed by, the private sector. thus, the imf and the world bank are also justified and have to be streamlined on this basis. 2. this does not mean, however, that international institutions should not be viewed very critically. they work with public money, and thus have to operate very efficiently – in the short - run as well as in the long - run. international organizations are responsible to the public, and thus are always part of an open and changing world. 3. international organizations – particularly the imf and the world bank – should refocus their respective mandates. otherwise we run the risk that while there is double work on some tasks, other crucial tasks for safeguarding international economic and financial stability are neglected. responsibilities would be blurred with yet unknown consequences for long - run international stability. i fully agree with the findings of an independent task force – sponsored by the council on foreign relations – on the future international architecture : the imf and the world bank have tried to do too much in recent years or were driven by their shareholders

of governors of the federal reserve system, federal reserve issues fomc statement, march 15, 2020. 7 see board of governors of the federal reserve system, federal reserve issues fomc statement, april 29, 2020 ; see board of governors of the federal reserve system, federal reserve issues fomc statement, june 10, 2020. 8 see board of governors of the federal reserve system, federal reserve announces extensive new measures to support the economy, march 23, 2020. 9 see board of governors of the federal reserve system, federal reserve issues fomc statement, june 10, 3 / 4 bis central bankers'speeches 2020. 10 for announcements of the various programs, see board of governors of the federal reserve system, federal reserve board announces establishment of a commercial paper funding facility ( cpff ) to support the flow of credit to households and businesses, march 17, 2020 ; board of governors of the federal reserve system, federal reserve board announces establishment of a primary dealer credit facility ( pdcf ) to support the credit needs of households and businesses, march 17, 2020 ; board of governors of the federal reserve system, federal reserve board broadens program of support for the flow of credit to households and businesses by establishing a money market mutual fund liquidity facility ( mmlf ), march 18, 2020 ; board of governors of the federal reserve system, federal reserve announces extensive new measures to support the economy, march 23, 2020 ; board of governors of the federal reserve system, federal reserve will establish a facility to facilitate lending to small businesses via the small business administration ’ s paycheck protection program ( ppp ) by providing term financing backed by ppp loans, april 6, 2020 ; and board of governors of the federal reserve system, federal reserve takes additional actions to provide up to $ 2. 3 trillion in loans to support the economy, april 9, 2020. 4 / 4 bis central bankers'speeches