william c dudley : opening remarks at the transatlantic economy – convergence or divergence conference remarks by mr william c dudley, president and chief executive officer of the federal reserve bank of new york, at the transatlantic economy : convergence or divergence conference, federal reserve bank of new york, new york city, 18 april 2016. * * * it is my pleasure to welcome you to today ’ s conference. over the past decade, the new york fed has been working together with the european commission and the centre for economic policy research in sponsoring a number of conferences on interdependencies and policy challenges on both sides of the atlantic ocean. today, as in the past, we have a great program with many distinguished speakers from academia, and the private and public sectors. in particular, i would highlight the keynote speech following lunch by pierre moscovici, european commissioner for economic and financial affairs, taxation and customs. as the two largest economies in the world, the united states and the european union have a shared stake in the vitality of the global economy. without growth in both our regions, the global economy will not prosper and we will not be able to provide the conditions to enable our citizens to fulfill their aspirations. both the united states and europe suffered large social and economic costs from the financial crisis and the deep recession that followed. we continue to take steps to minimize the risks that we will ever find ourselves in that situation again. in many respects, the united states and europe face similar challenges and have similar goals. today i want to focus on some of the challenges. on the regulatory side, there is considerable good news. in particular, substantial progress has been made in strengthening the global banking system. capital and liquidity standards for internationally active banks have been raised significantly. this should reduce the risk of failure for these banks. also, the financial system is being made more resilient and robust. for example, the global set of principles for financial market infrastructures has been updated and strengthened. moreover, some steps have been taken to better deal with the failure of systemically important financial firms on a cross - border basis. key attributes for resolution regimes have been promulgated by the financial stability board. efforts are underway to improve how we can work together in a coordinated way on a global basis. but more needs to be done. the impediments to an orderly cross - border resolution still need to be fully identified and dismantled. this is necessary to solve the so - called “ too

and safeguards implemented to protect the parties involved in a transaction while also protecting the financial system as a whole. other frictions may result from consumer or business preferences. as policymakers, we must consider all of these frictions within this broader context. let ’ s take compliance requirements as an example. banks play a critical role in implementing compliance and reporting requirements that support public policy objectives, including the deterrence of financial crimes and countering terrorism finance. in the united states and other jurisdictions, banks balance this need for transparency to deter crime with the need to protect the privacy of consumer financial data. 4 while regulatory compliance for more information on the g20 cross - border payments improvement roadmap and its progress, see financial stability board, enhancing cross - border payments : stage 3 roadmap ( financial stability board, october 2020 ), https : / / www. fsb. org / 2020 / 10 / enhancing - cross - border - payments - stage - 3 - roadmap / and financial stability board, g20 roadmap for enhancing cross - border payments : consolidated progress report for 2023 ( financial stability board, october 2023 ), https : / / www. fsb. org / 2023 / 10 / g20 - roadmap - for - enhancing - cross - border - paymentsconsolidated - progress - report - for - 2023 / see board of governors of the federal reserve system, money and payments : the u. s. dollar in the age of digital transformation ( washington : board of governors, january 2022 ), https : / / www. federalreserve. gov / publications / files / money - and - payments - 20220120. pdf. - 5requirements add complexity, particularly in cross - border payments, it is a complexity that results from the discretion to apply various compliance frameworks in different jurisdictions. with this in mind, we can consider ways to encourage more consistent implementation of rigorous international standards and continue to support the development of new technologies and solutions that help automate processes, reduce costs, and promote effective safeguards across jurisdictions. as i have discussed in previous remarks, while conversations on payments innovation often focus on technological capabilities as the solution to realizing certain benefits, technology on its own is not always the driver of realizing these benefits since many of these issues are grounded in policy choices and operational realities. 5 however, it is still important to assess potential opportunities for technological innovation and the benefits technology could provide within