, there was a broad consensus that it would be in everyone ’ s best interest not only to preserve but indeed to strengthen cooperation with each other. to do justice to the global dimension of the crisis as well as to the growing importance of emerging market economies, the task of formulating a strong and coordinated response to the crisis was elevated to the level of the g20. the financial stability forum was superseded by the more influential financial stability board, which also had a much broader membership. the basel committee broadened its membership as well, inviting countries from the g20 to join – among them south africa. meanwhile, central banks across the globe provided each other with swap lines to ensure a sufficient supply of liquidity. bis central bankers ’ speeches since then, we have worked closely together to better understand what went wrong before and during the crisis, and to reform the regulatory and supervisory architecture accordingly. this has brought about yet another wave of changes to the environment we operate in. certainly, one of the defining changes was the emergence and growing importance of macro - prudential policy. we have come to understand that monetary policy and microprudential supervision alone are not sufficient to ensure macroeconomic financial stability. the consequence is a whole new additional perspective on the financial system, and we are still in the process of understanding this perspective, determining how it interacts with our other tasks as supervisors and central bankers, and how to best utilise the new macroprudential toolset at hand. here, we can learn from the experience of emerging market economies, some of which had been using macro - prudential tools long before the crisis of 2007. meanwhile, the micro - prudential perspective remains as relevant as ever. therefore, we have comprehensively revised and extended the basel accord over the last couple of years. the greater part of the work has been done, and basel iii is already being implemented by regulators across the globe. however, there is still some fine - tuning left to do, and in the basel committee i am working together with my colleague from the sarb to finalise basel iii by the end of this year. looking at all of these developments we can say that – less than a decade after the crisis erupted – central bankers and banking supervisors find themselves in a wholly new landscape few of us would have imagined just a couple of years ago. and while, as i have said, we are still in the process of fine - tuning and gradually implementing the new framework we have built,

andreas dombret : international cooperation is the answer – shaping the regulatory and supervisory architecture speech by dr andreas dombret, member of the executive board of the deutsche bundesbank, at a reception to welcome ms jenny kilp, bundesbank representative in south africa and financial attache at the german embassy in pretoria, pretoria, 29 august 2016. * * * ladies and gentlemen, thank you, ambassador streicher, for hosting this event here at the german embassy in pretoria. i am more than pleased that governor kganyago and deputy governor mminele is here today. thank you for your remarks, governor. deutsche bundesbank today introduces, with ms jenny kilp, its first representative to south africa – and the african continent as a whole. the step marks the beginning of a frequent exchange of information on financial and monetary policy issues, the aim being to allow each country to better understand the other ’ s economic and financial interests and to facilitate cooperation in international fora. by expanding its representative network, the bundesbank pursues the goal of being present in the main industrialised and emerging countries and of following developments in almost all g20 countries, either directly or indirectly. in this sense, south africa has been something of a white spot on the bundesbank ’ s map of representative offices and representatives at german embassies, given the growing role played by the country and the african continent at large in international economic and financial policy. the bundesbank recognises the economic importance and potential of the continent and of south africa in particular by delegating ms. kilp to pretoria. ladies and gentlemen, international cooperation is the answer to a world that has been growing together ever closer for decades. the world in which we live has become rather small. and in a small world, every policymaker in every country must be aware that his or her decisions can influence other countries as well. this holds especially true for financial sector : financial markets in particular have become integrated to such a degree that a small distortion at one end of the world can quickly spread and affect the entire system. we as central bankers and banking supervisors have adapted to these developments by cooperatively harmonising regulation and supervisory practices across the globe, step by step. the evolvement of the basel accords since the mid - 1970s is one of the most prominent outcomes of this process. in 2007, the financial crisis shook up financial markets and challenged governments, central banks and supervisory authorities worldwide. and from the beginning