in competition with other currencies only if it can be kept stable over the long term. the relevant institutional requirements have been met : the ecb is an independent central bank which is primarily committed to the objective of price stability. the euro ’ s greatest success to date has been as an issue currency on the international financial markets. between january 1999, the start of emu, and march 2000, 47 % of the net issuance in international debt securities was denominated in euro, compared with a dollar ratio of 45 %. it seems that the large issuers took advantage of the low euro interest rates in order to raise large amounts of funds in euro. however, it is also apparent that the euro ’ s success in terms of new issues increased its share of all international debt securities outstanding only slightly compared with its predecessor currencies, namely from 25 % at the end of 1997 to 30 % at the end of march 2000. at this reference date, the share of the dollar stood at 47 %. the euro ’ s share of international banking business is somewhat smaller than on international securities markets, amounting to 28 % in the case of bank assets and 24 % in the case of bank liabilities, compared with a dollar market share of 40 % and 42 %, respectively. relative to the share that the euro ’ s predecessor currencies had previously, the euro comes off much better in international banking business. 4 from the perspective of a central bank, it would be especially interesting to know the euro ’ s share of the official foreign exchange reserves. it is precisely as a reserve currency that the dollar has traditionally had the largest lead over all other currencies, with a recent share of more than 60 %. unfortunately, the corresponding share of the euro cannot currently be quantified reliably, since the underlying database is decidedly incomplete. the euro has developed very quickly into an - at least numerically - important international anchor currency. the ecb has recently listed some 50 countries in whose currency regime the euro is playing a role. the arrangements stretch from d - mark or euro - based currency boards ( bosnia - herzegovina, bulgaria, estonia ) and mutual agreements as part of erm ii ( denmark, greece ) to rather informal exchange rate links, which are geared to baskets that, in addition to the euro, include other currencies, too. two results of my empirical analysis merit particular attention. firstly, the dollar continues to be the leading international currency in virtually all functions

randal quarles : getting it right - factors for tailoring supervision and regulation of large financial institutions speech by mr randal k quarles, vice chairman for supervision of the board of governors of the federal reserve system, at the american bankers association summer leadership meeting, salt lake city, utah, 18 july 2018. * * * i want to thank the american bankers association for inviting me to speak. 1 this is an era of relatively rapid evolution in banking regulation, an area of human endeavor that is not commonly known for its speedy metamorphoses. but in the time since i became the vice chairman for supervision at the federal reserve, we have seen agreement on the final pieces of the international framework for post - crisis regulation — the so - called basel iii endgame. the federal reserve has issued a number of proposed rule changes that would improve our capital and stress testing regime. and in late may, the congress enacted the economic growth, regulatory relief, and consumer protection act ( egrrcpa ), which, among other things, directs us to further tailor our supervision and regulation of large banks with more than $ 100 billion in assets. in other words, the congress wants to see action and has, to a certain degree, specified some of the steps we need to take. how we respond to that task, especially as it applies to large banks, will be the focus of my remarks today. but before i delve into those details, i want to provide an overview of what i hope you ’ ll take away. first, i want to underscore that i believe tailoring of financial regulation is good public policy. the federal reserve board is a firm adherent of the recent legislation ’ s underlying principle that regulation should be tailored to risk. to an extent, as i will later describe, this principle is already embedded in several aspects of our supervisory framework. second, the federal reserve will need to revise its framework to allow for a greater differentiation in the supervision and regulation of large firms. to date, our tailoring of regulations has been based largely but not exclusively on asset size, which reflects an unduly onedimensional approach. we have been evaluating additional criteria that may provide for greater regulatory differentiation across large banks, and the recent legislation is consistent with the goals of that initiative. specifically, the legislation recognizes that large banks have a variety of business models and risk profiles ; supervision should be flexible enough to incorporate this heterogeneity. third,