of the main jurisdictions which first implemented basel ii and basel ii. 5, and remains committed to promptly implementing basel iii, which i consider as a cornerstone of the g20 reform agenda. timely and consistent implementation of the new regulatory standards as well as uniform assessment of the implementation process based on common evaluation standards around the globe are crucial for strengthening the resilience of financial systems and restoring confidence in markets. delayed implementation of basel ii. 5 and basel iii by any major jurisdiction would weaken the incentives for financial institutions to comply and also cast serious doubt on the overall reform effort. finally, an area where, in my view, enhanced coordination is required concerns the structural measures being proposed in different jurisdictions. since recent initiatives in the us ( volcker rule ), the uk ( vickers report ) and the eu ( liikanen report, on which the european commission will now follow up ) will mainly target internationally active banks, coordination at global level in this policy area is important to ensure a level playing field and to avoid regulatory arbitrage by banks with significant cross - border activities. clearly, regulators, supervisors as well as financial institutions are facing several challenges in the years ahead both as regards policy design and implementation. there is a risk that weak economic growth and an increasing focus on domestic policy priorities can weaken the incentives and appetite for coordinated reform efforts. but well - integrated and well - regulated financial markets are needed more than ever for sustainable and stable growth, both at global and at regional level. but i ’ m confident that a successful accomplishment of the reform agenda and a consistent implementation of the policy measures will help to achieve this goal. i thank you for your attention. cpss and iosco : principles for financial market infrastructures. april 2012. bis central bankers ’ speeches

the strongest tools for boosting investment activity and achieving sustainable growth, but also for supporting fiscal adjustment, insofar as they serve to reduce public debt. 3rd. tackling the high stock of non - performing loans, which is the greatest challenge facing the banking system. addressing this problem will not only alleviate the burden on cooperating borrowers, but will also enable banks to free up funds for channelling into more dynamic and extrovert businesses. this would contribute to a comprehensive restructuring of the economy in favour of tradable goods and services, leading to a rise in productivity and potential output, even in the short run. the actions described above, together with an exit from recession and a gradual recovery of the economy, will bring about stabilisation and, subsequently, a decline in the npl ratio, with beneficial effects on the economy as a whole. 4th. gradual lifting of the capital controls. the relaxation of the capital controls described earlier, along with improvements in confidence and liquidity, are expected to contribute to the normalisation of economic conditions by facilitating both enterprises and individuals in their transactions. 5th. reforms to support extroversion. the implementation of reforms in the markets for products and services and in the functioning of the public sector will lead to an increase in investment and employment, while it is also expected to encourage innovation and the introduction of new technologies by increasing competition. in turn, these developments will improve the quality of greek exports and expand the export base and overall competitiveness of the greek economy. this will ensure that the decrease in the current account deficit is sustainable, while also increasing potential output in the medium - to - long term. these actions will attract foreign direct investment and set in motion a virtuous circle signalling the definitive exit from the crisis and a sustainable increase in total productivity of the greek economy over the medium - to - long term. 6. conclusions the completion of the first review creates positive prospects for the recovery of the greek economy in the second half of 2016. at the same time, the commitment of our european partners to take action in order to ensure the sustainability of public debt in the short and medium - to - long term is a positive step forward. bis central bankers ’ speeches the bank of greece is of the view that the envisaged public debt management measures need to be specified, quantified and frontloaded. this would enhance the credibility and acceptance of the policies pursued, thereby helping to further consolidate the climate of confidence and strengthen economic recovery. moreover