speech klaas knot - “ macroprudential supervision : what ’ s in a name? ” ( c ) dnb “ the current macroprudential framework is not yet complete and effective to address all the different systemic risks within the financial system. we have to think about implementing the lessons from recent years, while also confronting new, upcoming risks like climate change and cyber risks, ” said klaas knot on monday 20 june, at the macroprudential research conference, jointly organized by dnb, riksbank and the bundesbank. in his opening address, he spoke about the origins of a macroprudential perspective on the financial system, its current relevance to support financial stability, and the challenges to address new upcoming risks like cyber risks and climate change. date : 20 june 2022 speaker : klaas knot location : dnb - riksbank - bundesbank macroprudential conference, santpoort good morning. welcome everyone at this joint macroprudential conference. after such a long time, it is inspiring to see a room full of researchers again, ready to share their latest ideas and insights among each other. i think you will all agree that the physical attendance of these conferences is much more interesting and useful than sitting behind our computers talking through zoom or webex. i thus hope you enjoy the upcoming two days here, with fruitful and active interactions. to give you some inspiration for this macroprudential conference, let me share with you some background on the importance of this topic. there is a great article from 2010 by piet clement who then worked at the bis about the history of the term macroprudential. the term was first used in an international meeting in 1979 by peter cooke. he was head of banking supervision from the bank of england and also well - known for chairing the cooke committee. as you may know, that committee turned out to be the predecessor of the basel committee. at that meeting in 1979, peter cooke identified the concern that microprudential vulnerabilities could transmit into macro - economic problems. although the underlying analysis in itself was not new, it was the first time that this was explicitly identified as a unique concept in maintaining financial stability. but as it sometimes goes with great ideas. this new perspective did catch some attention at first, but it disappeared soon thereafter from the international agenda. it was not until the outbreak of the asia - crisis in 1997 - 1998 that the macropr

in peripheral countries – and economic activity has receded slowly. looking at unemployment rates, these range from as low as 6 – 7 percent in germany to as high as 26 percent in spain, indicating widening regional disparities in business sentiment. recently, however, there have been gradually growing signs of a bottoming out. business and consumer sentiment in the area – including peripheral countries – is improving in a situation where financial markets have stabilized somewhat and the european authorities have modified their stringent fiscal consolidation plans, temporarily easing the measures. exports are also bottoming out, and gdp growth for the april - june quarter turned positive for the first time in seven quarters. with these developments continuing, the euro area economy is likely to bottom out and head toward a pick - up. bis central bankers ’ speeches 4. china ’ s economy with regard to emerging economies, the chinese economy continues to see stable growth against the background of firm domestic demand, as evidenced in particular by stable private consumption reflecting a favorable employment and income situation and by rising fixed asset investment, which is growing at a year - on - year rate of about 20 percent. nevertheless, china ’ s economic growth rate has been at a relatively low level of around 7. 5 percent. underlying this are the structural reforms that the chinese authorities are engaged in, which emphasize quality - based growth and lowering income disparities. specifically, one area of focus is measures to curb the excess production capacity and the rapid expansion in credit accompanying the 4 trillion renminbi stimulus package implemented in the wake of the global financial crisis. the so - called shadow banking system is another focal point. the chinese authorities are proceeding with policy responses to contain the risk of an overly rapid credit expansion through banks as well as non - banks. as a result, total social financing – a measure of aggregate credit supply to the economy mainly consisting of loans and corporate bonds – has been increasing at a slower pace. although these structural reforms tend to restrain growth, the authorities have also made clear that they will remain vigilant regarding economic growth, stating that they will fine - tune policies in a timely manner to achieve a growth rate of about 7. 5 percent for 2013. with the authorities aiming for well - balanced, sustainable growth, the chinese economy is likely to continue growing steadily at the current pace. 5. uncertainties regarding overseas economies uncertainties in overseas economies that require careful monitoring include ( 1 ) the effects of speculation about the direction of u. s. monetary policy on financial markets and