. let me assure you that dnb will keep a strict watch on bonus structures at financial institutions that induce directors to take irresponsible risks. we do not need to completely prohibit bonuses, but it is essential to align the size and the time frame of bonuses more closely to the longer - term goals of the enterprise itself. as far as i am concerned, bonuses could be scrapped altogether. i would prefer to see executives drawing good, competitive salaries. that salary should be enough incentive for a good and sound performance that actually contributes to financial institutions ’ long - term objectives. i am convinced that the financial sector itself would benefit most from stable pay structures. of course this issue must be tackled internationally. globalisation has removed the borders in the financial sector. since financial risks have become marketable, and borders between countries have blurred, losses are spread more widely. we not only reap the rewards of globalisation, but the bitter fruits too, because everybody is affected when things go badly wrong. that ’ s why we need international discussion and action on bonus structures, integrity and other such matters. the financial stability forum, in which i sit as the chairman of the basel committee, published a code of conduct for pay structures in july. it centres on the recommendation that pay incentives should be based on actual performance and should be in line with the longterm interests of shareholders and the profitability of the enterprise as a whole. in addition, dnb is supported at national level by the afm ’ s serious approach to its integrity task. afm supervises the sound conduct of the sector towards its customers, the consumers. and only when the sector deals soundly with consumer interests, will consumers regain confidence in the financial sector. the first steps have been taken : nationally and internationally, financial sector integrity is on the agenda. in the coming period we will join in european and global discussions on sound, confidence - inspiring international supervision. supervisors, governments and enterprises together. because if there ’ s one thing we ’ ve learnt from the credit crisis, from the loss of confidence in the financial sector, it is – in my opinion – that we can only regain that confidence through national and international cooperation!

klaas knot : the recent financial tumult - lessons and responses keynote speech ( virtual ) by mr klaas knot, president of the netherlands bank, at the 7th annual conference of the european systemic risk board " financial stability challenges ahead : emerging risks and regulation ", 16 november 2023. * * * good afternoon everyone. as many of you know, i am a general board member of the european systemic risk board ( esrb ). in that capacity, i contribute to, and follow the work of the esrb closely. but today, i will be speaking as chair of the financial stability board. and so, i wanted to begin by highlighting a few similarities between these two important international bodies. both the esrb and the fsb were created after the 2008 global financial crisis ( gfc ). the former under the eu, the latter under the g20. those of you who have been involved in one of our committees such as the esrb's atc 1 or the fsb's src 2 will know that we share a love for acronyms. but, of course, we have something far more fundamental in common. we both monitor vulnerabilities in the financial system. we make policy recommendations to address them and we look at how these recommendations are implemented. ultimately, we have the same goal. increasing the resilience of the financial system. either with a european focus, in the case of the esrb ; or with a global focus – in the case of the fsb. international cooperation is in our dna. so what has the fsb been doing? since our inception in 2009, we have overseen a range of financial sector reforms. these include : increases in the quality and quantity of capital and liquidity in the banking system ; frameworks to resolve failing financial institutions ; and enhancements to the resilience of non - bank financial intermediation, among others. i think it's fair to say that these post - crisis reforms have made the financial system better equipped to withstand unexpected shocks. of course, our focus is on the financial system at large. therefore, individual financial institutions may fail even as the broader system continues to function. we saw this happening in the banking sector earlier this year. but, however unexpected shocks like these may have been, in hindsight, they can be explained. and so, it is up to us, regulators, but also the industry, to look for that explanation and draw lessons from it