timothy f geithner : challenges in risk management remarks by mr timothy f geithner, president and chief executive officer of the federal reserve bank of new york, at the institute of international bankers luncheon, new york, 18 october 2005. * * * thanks for giving me a chance to address this meeting of the institute of international bankers. your presence in our markets adds greatly to the competitiveness and dynamism of the u. s. financial system. the major international institutions contribute not just depth and liquidity to our markets, but also bring new ideas and global perspectives on developments here and abroad. and the institute has played an important role in fostering dialogue among international bankers and policymakers on issues of mutual interest. you are meeting at a time when the financial markets reflect a substantial degree of confidence about the future — confidence in the stability of future macroeconomic outcomes and confidence in the strength of many of the world ’ s major financial institutions. against this backdrop, i thought it might be useful to talk about our hierarchy of concerns and priorities in the supervisory process, particularly those that relate to the financial strength of the major intermediaries and the functioning of the markets in which they operate. i should note that we, of course, have a broader set of related supervisory responsibilities and a broader agenda of specific concerns. just to list a few of these, we are deploying significant supervisory resources to evaluate efforts to strengthen internal controls and compliance functions, including those specifically directed at vulnerability to money laundering and fraud ; we are encouraging efforts to reduce operational risk and improve resilience ; and we are assessing residential and commercial real estate lending practices. these are important, and familiar, priorities to the banks operating in our markets. today, however, i ’ d like to concentrate on some of the risk management challenges that are at the heart of prudential supervision — in particular, the financial health of the core intermediaries and the major wholesale markets for finance and risk mitigation. while these topics are always at the center of our agenda, they are worthy of special attention today for two reasons. the first relates to the overall economic and financial context in which financial institutions operate today. we have been through a period of relatively favorable overall macroeconomic conditions in the united states, low realized credit losses, lower volatility in output growth and relatively low and stable, long - term inflation expectations. this has been accompanied by a reduction in many different types of risk premia and in expectations of future

we endeavour to support the further development of seychelles ’ fintech landscape, and ultimately contribute to a more diverse, competitive, efficient and inclusive financial services sector. i look forward to your engagement, comments, questions and proposals on this new framework. stakeholder buy - in and collaboration are essential if we are to be successful in its implementation, and ensure that seychelles - particularly the financial sector - is not left behind in today ’ s world of digital transformation. with these few remarks, i wish you all a fruitful session. thank you. 2 / 2 bis - central bankers'speeches