in the process. for instance, tlac instruments should be strictly subordinated to instruments not included in tlac in order to ensure transparency and legal certainty. we also need clear rules that restrict the holdings of tlac instruments by other banks in order to limit the risk of contagion. here, a number of potential approaches are currently under discussion. these include deductions from total capital, punitive risk weights and large exposure limits. 4. conclusion to sum up : many people blame untamed market forces for the financial crisis of 2008. i argue that it was, in fact, not too much market but too little that contributed to the nearcollapse of the financial system. a core characteristic of any well - functioning market economy was absent from the financial sector, namely the threat of failure. large banks operated with implicit government support that distorted their incentives for prudent behaviour and eventually cost taxpayers billions of euros. therefore, the regulatory reforms aim to reintroduce the principle of individual failure into the financial system. to reach this objective we have to establish mechanisms that allow banks to fail without disrupting the entire financial system. we have made significant progress both at the european and at the global level. and although we have not yet reached our objective, i am confident that we will eventually do so. thank you. bis central bankers ’ speeches

powerful monetary easing. b. policy measures in march : enhancement of fund - provisioning measure to support strengthening the foundations for economic growth at the subsequent monetary policy meeting in march, the bank decided to enhance the fundprovisioning measure to support strengthening the foundations for economic growth ( hereafter referred to as “ the growth - supporting funding facility ” ). the growth - supporting funding facility supplies long - term funds at a low interest rate to financial institutions in accordance with their efforts – in terms of lending and investment – toward strengthening the foundations for economic growth. looking at the composition of the areas to which financial institutions have been lending and investing using this facility, “ environment and energy business ” and “ medical and nursing care business ” accounted for a large share. let me share with you some examples of actual lending or investment based on information made public by financial institutions. for example, there was a project in which the manager of a nursing home for the elderly upgraded the air - conditioning system to an eco - friendly one that recovered waste heat. in another case, food manufacturers made investments for the purpose of expanding their production sites in emerging asian economies, so as to respond to vigorous demand from such economies. taking into account the lending and investment conducted under the facility, the bank decided to establish special rules, first, for a new lending arrangement for small - lot investments and loans and, second, for a new u. s. dollar lending arrangement for foreign currency - denominated investments and loans. the bank also decided to increase the maximum outstanding balance of loans under the main rules for the facility, which raised the overall outstanding balance of loans available through the facility by 2 trillion yen. the bank also decided to extend the deadline for applications for new loans under the facility, by two years. such measures are aimed at further enhancing the bank ’ s efforts to strengthen growth potential, which is another pillar for overcoming deflationary pressures. bis central bankers ’ speeches iv. has the bank changed? the series of policy measures by the bank – especially its decision in february to clarify its policy stance and further enhance monetary easing – took many market participants by surprise, since few had predicted such responses. following the bank ’ s decision, stock prices rose and the yen depreciated. these developments were of course significantly influenced by some new positive worldwide developments at that time, such as diminishing perceived risks from the european debt problem and relatively firm improvement in the u. s. economy. in addition, i believe that