longer being questioned. supervisory teams from different countries see the banks with fresh eyes and on the basis of their common experience. this creates the necessary critical distance for sensible supervision. • banking supervision in europe should take tough but fair action ( the emphasis being on “ action ” ). european supervision, the ssm, sees itself as a supervisor which identifies and addresses risks at an early stage, and thus contributes to ensuring that the banking system is able to function properly. a light touch and reactive supervision should belong to the past. • european supervision should create a level playing field. that is why the first thing that we developed in the ssm was a consistent supervisory approach with a consistent methodology for assessing banks ’ risks and governance structures, as well as their equity capital and liquidity positions. • for the supervision of systemically relevant and large, internationally active banks in particular, the ssm represents a quantum leap forward. the ssm allows us to compare and adapt supervision across 19 countries, to identify best practices and to ensure that they are implemented consistently through effective quality assurance. there are now completely new possibilities for comparative and cross - sectoral analysis than were available at the national level. for our tasks, we can use information and insights from banks with very different business models. this enables us to identify risks and undesirable developments more clearly and at an earlier stage, and to take suitable countermeasures. we can also put work on banks ’ internal models, which have a significant influence on a bank ’ s capital requirements, on a new footing. we will use the opportunity, given the improved level of data and insight, to implement strict rules for the approval and ongoing supervision of internal models. despite this progress, there is still a lot to do in the further development of supervision. the effectiveness and efficiency of supervision is dependent on the legal framework it applies, although this is not the sole determinant. soft european standards or diverging national rules impair the ssm ’ s ability to take action and its effectiveness. and this does not just concern bis central bankers ’ speeches national rules that affect the quality of banks ’ equity. the ssm applies 19 different national legal frameworks and not only when, for example, we examine the professional suitability of managers in large, internationally active banks. detailed rules on governance in banks and deliberations on transposing extensive rules on banks ’ internal control systems into national law complicate or even prevent the desired level playing field of consistent supervision

market committee chairman wick veloso, the money market association of the philippines under president michael joseph delfino government securities eligible dealers ( gseds ), esteemed guests, on behalf of the monetary board and the bangko sentral ng pilipinas, i welcome you to the bsp. magandang hapon sa inyong lahat. allow me to share some pointers on how to make common - ground conversations more meaningful. these tips are borne not just out of my thirty - six ( 36 ) years of experience as a central banker not just as deputy governor of the supervision and examination sector for twelve ( 12 ) years but these points were learned chiefly in my capacity as a friend and colleague ( perhaps even as a husband and father! ). 1 / 3 bis central bankers'speeches in my experience, a conversation is more meaningful when : first, it is between those with the same goals. in this, there is no issue. as mentioned earlier, the sec, btr and bsp have always been partners. for one, together with other institutions, 2 we are members of the financial stability coordination council ( fscc ). the fscc ’ s key objective is to identify, manage and mitigate the build - up of systemic risks. our institutions share the prudential objective of financial stability and development. our being here today is just a step - up an expression and a specific operationalization of our original goals. in this particular case, we share the same vision of developing our local currency debt market to support our growing economy in a sustainable manner. as a result, the capital market working group of the bsp, the btr, and the sec, with the support of the department of finance, joined hands in developing the philippine roadmap to accelerate the development of the domestic debt market. three areas are prioritized : deepening the local bond market by adopting reforms to incentivize market - making, increasing supply of short - term debt securities, and developing an effective regulatory framework for the repo and otc government securities markets ; ( 2 ) the creation of reliable financial benchmarks and valuation of financial instruments ; and ( 3 ) the establishment of an integrated financial market infrastructure to promote price discovery, transparency and orderly trading, clearing, and settlement of the full range of financial transactions. second, the value of a conversation is greater when those who engage in it understand its relevance and importance. otherwise, discussion is just chatter