entirely. impact studies are an important tool in this context. to gauge the effects of new regulation, such studies should accompany all major reform projects. to avoid regulatory arbitrage, we must take into account the cross - border effects of regulation. the global financial system needs global rules. accordingly, we need to ensure that internationally agreed measures are transposed into national laws and regulations in a timely and consistent manner. i strongly support the in - depth implementation monitoring by the financial stability board and by international standard - setting bodies as essential tools for maintaining implementation pressure. finally, the crisis has reminded us that containing systemic risk is vital for safeguarding financial stability. to mitigate and prevent systemic risks, macroprudential policy frameworks are being implemented in many countries, including germany. since the beginning of this year, the german financial stability act has been in force. a financial stability commission comprising representatives of the bundesbank, the federal financial supervisory authority and the german finance ministry has been established. the commission is in charge of designing consistent macroprudential policies and held its first meeting just yesterday. the institutional set - up is fairly advanced. now, we need to deepen our understanding of the effects of macroprudential tools and operationalise their use. 4. changes to the financial landscape although financial sector reforms are not yet complete, it is already possible to see the impact of new regulation on the financial landscape. some banks have fallen off the list of global systemically important banks because they have simplified their structure, downsized or de - risked their operations. this also includes a german bank. several banks are deemphasising high - profile but risky capital market business that benefited employees more than shareholders and society as a whole. the modified business models should ultimately result in a more resilient and diversified sector with a more sustainable risk - return profile. further changes to banks ’ business models will be brought about by structural measures. concerns about institutions ’ business conduct built the political case for such measures, including the ring - fencing or prohibition of certain activities. corresponding recommendations have been made by paul volcker, john vickers and erkki liikanen in the us, the uk, and the eu respectively. while the proposals differ in important details, they share the same general idea. deposit - taking credit institutions should be shielded from the risks of speculative proprietary trading and high - risk lending. such a separation of business lines can play a part in making the financial system more stable and resilient.

andreas dombret : current challenges facing central banks – the bundesbank ’ s stance speech by dr andreas dombret, member of the executive board of the deutsche bundesbank, at the ahk ( auslandsaussenkammer ) world conference, berlin, 11 may 2016. * 1. * * introduction dr wansleben, mr machnig, ladies and gentlemen, before i begin, i would like to thank you for inviting me to come here and speak with you today. in germany, foreign trade has traditionally been a cornerstone of its economic success. chambers of commerce abroad make a crucial contribution to the success of german enterprises in foreign markets. you could say that, today, i am visiting the power houses of the german economy, which is why i am so pleased to be here with you in berlin. the motto of this event is : “ where is the global economy heading? ” the answer to this question will be put together like the pieces of a jigsaw puzzle from the various reports of the speakers at your conference, who come from all over the world. within the space of the next 20 minutes, i will try to lay down the foundations for this jigsaw by giving you an overview of the global economic situation. i will also be elaborating on the consequences that this has for monetary policy and for banking supervision in the euro area. 2. economic activity the new year got off to a bumpy start for the global economy, with the economic slowdown in china dampening the new year ’ s spirit right at the very beginning of the year. this was compounded by the sharp decline in oil prices at the turn of the year, which was perceived as having an increasingly detrimental impact on the global economy. furthermore, some financial market players had doubts as to whether an ever more accommodative monetary policy stance can really solve the existing problems. this explains why sentiment on the financial markets was also very nervous at the beginning of the year. the situation has, by and large, calmed down since then, however. according to the international monetary fund, the global economy will continue to recover, albeit at a somewhat slower pace than at the beginning of the year. the major industrial countries remain on a moderate growth path, even though growth in the united states and japan slowed down somewhat in the in the final quarter of 2015 and the first quarter of 2016. nonetheless, the underlying trend is still pointing upwards and developments in the labour markets are not