instruments, the german supervisor bafin is the appropriate body. tight coordination between macro - and microprudential policies as well as between the participating institutions needs to be ensured. this should also extend to the ministry of finance as it has the ultimate responsibility for financial policy and is the representative of the taxpayer. macroprudential authorities need to ensure transparency and clear communication of decisions and decision - making processes. transparency and communication in terms of policy strategy, risk assessment and the use of instruments are indispensable in order to make macroprudential policies comprehensible to financial market participants and the general public. systemic risk does not respect national borders. therefore, it is in our best interests to coordinate our actions in order to mitigate systemic risk internationally. the establishment of the european systemic risk board – esrb in short – is the european answer to this international challenge. the task of the esrb is to assess systemic risk, to issue recommendations – and, should the situation worsen – to issue warnings across europe. recently, the scope of the esrb has even broadened : it will assume a coordinating role for macroprudential policies and guard against protectionism in the regulatory framework. in its work, the esrb should draw on the substantial expertise and analytical capabilities of its members to fulfill its mandate. it is my strong belief that national authorities possess the greatest expertise in the analysis of macroprudential risks. according to the principle of subsidiarity, and because the costs of a crisis are borne on a national level, eu member states need the appropriate authority for macroprudential interventions and the calibration of instruments. now, the eu member states must get their macroprudential policies to work. today ’ s challenges call for a macroprudential policy which is alert and capable. conclusion let me conclude with a very brief outlook. at the current stage, good macroprudential regulation is more about basics such as defining properly the objective, compiling the efficient toolkit and setting up the competent institutions. one day, this part of the job will be done. then, we will enter a new stage in which good macroprudential policy is more related to conduct and to daily routine. from then on, the foreseeable challenges will more or less correspond to the five famous principles of better bis central bankers ’ speeches regulation, that is : being proportionate, accountable, consistent, transparent and targeted. i am confident that, in the near

will continue. 6. outlook the pfandbrief is undoubtedly a winner of the financial crisis. the voluntary transparency initiative of the association of german pfandbrief banks has also contributed to this. this initiative could be a model for other asset classes – for example abs – to increase transparency and to regain investors ’ confidence. though issuers have to cope with higher competition for the favour of investors, from the perspective of the bundesbank the pfandbrief is well positioned for the future. thank you very much. bis central bankers ’ speeches