increase gradually later in 2015 and in 2016. the governing council will continue to closely monitor the risks to the outlook for price developments over the medium term. in this context, we will focus in particular on geopolitical developments, exchange rate and energy price developments, and the passthrough of our monetary policy measures. bis central bankers ’ speeches turning to the monetary analysis, recent data indicate a pick - up in underlying growth in broad money ( m3 ), although it remains at low levels. the annual growth rate of m3 increased to 3. 1 % in november 2014, up from 2. 5 % in october and a trough of 0. 8 % in april 2014. annual growth in m3 continues to be supported by its most liquid components, with the narrow monetary aggregate m1 growing at an annual rate of 6. 9 % in november. the annual rate of change of loans to non - financial corporations ( adjusted for loan sales and securitisation ) remained weak at – 1. 3 % in november 2014, compared with – 1. 6 % in october, while continuing its gradual recovery from a trough of – 3. 2 % in february 2014. on average over recent months, net redemptions have moderated from the historically high levels recorded a year ago and net lending flows turned slightly positive in november. in this respect, the january 2015 bank lending survey indicates a further net easing of credit standards in the fourth quarter of 2014, with cross - country disparities decreasing in parallel with an increase in net demand for loans across all loan categories. banks expect that these dynamics will continue in early 2015. despite these improvements, lending to non - financial corporations remains weak and continues to reflect the lagged relationship with the business cycle, credit risk, credit supply factors and the ongoing adjustment of financial and nonfinancial sector balance sheets. the annual growth rate of loans to households ( adjusted for loan sales and securitisation ) was 0. 7 % in november, after 0. 6 % in october. our monetary policy measures should support a further improvement in credit flows. to sum up, a cross - check of the outcome of the economic analysis with the signals coming from the monetary analysis confirmed the need for further monetary policy accommodation. all our monetary policy measures should provide support to the euro area recovery and bring inflation rates closer to levels below, but close to, 2 %. monetary policy is focused on maintaining price stability over the medium term and its accommodative stance contributes to supporting economic

mark carney : regulatory work underway and lessons learned remarks by mr mark carney, governor of the bank of england and chairman of the financial stability board, at the 29th annual g30 international banking seminar, washington dc, 12 october 2014. * * * six years ago when the financial crisis was in full force, the g7 met here in washington. we backstopped our entire financial systems. the g20 then committed to its fundamental reform. the first objective was to fix the deep and varied fault lines that caused the crisis. we are now in prospect of substantially completing that job at the brisbane summit. core financial institutions are more resilient. effective bank capital requirements have increased seven - fold. major banks are on track to meet these requirements five years in advance. and for the first time liquidity standards have been established. there have been fundamental changes to banks ’ relative incentives to engage in proprietary trading, market - making and lending, as well as restrictions on contingent exposures to off balance sheet vehicles, such as sivs. shadow banking is being transformed into resilient market - based financing. minimum margin requirements have just been agreed for the repo market, and a variety of shadow banking institutions, including money market funds, have been reformed. derivative markets are safer. trading is now simpler and more transparent. central clearing and trade reporting requirements are coming on - stream, backed up in over half of fsb jurisdictions by capital requirements and, from december 2015, margining requirements. half of interest rates swap transactions are now centrally cleared. ending too big to fail those are significant achievements but the job of fixing the fault lines cannot be complete without ending too big to fail. operating in a heads - i - win - tails - you lose bubble, the world ’ s largest banks threatened the stability of the global financial system. their bail - out using public funds undermines market discipline and goes to the heart of fairness in our societies. this cannot be allowed to continue. it is essential that all systemically important financial institutions can be resolved when they fail : – without the need for taxpayer support. – and without disruption to the wider financial system or real economy. tackling the rampant moral hazard at the heart of the financial system hasn ’ t been easy. and our success can never be absolute. specifically, we can ’ t expect to insulate fully all institutions from all external shocks, however large. bis central bankers ’ speeches but we can change the system so that systemically important institutions bear