prices declined and investors experienced losses as the value of the underlying assets declined. this did not lead to stability issues in the broader system, although the freezes did cause hardship for some individual investors. so our own experience is that these types of disruptions in the asset management industry can be managed. however, the degree to which this lesson can be applied more broadly remains to be seen. globally, there is considerable effort being devoted to understanding the nature of the risks in this area, including whether these risks are any different to those that would arise if investment portfolios were managed directly by the individual investors themselves, without the input of an asset manager. a related stream of work – which in some way parallels similar work for the banking industry – is to examine what role regulation should play in addressing the various risks and what role the central bank should play. relevant issues here include : how prescriptive any liquidity regulations should be ; what are the merits of alternatives to fund freezes, such as exit fees and liquidity gates ; and what, if any, role should the central bank play when markets freeze and normally liquid assets cannot be traded. these are all difficult issues to deal with and perspectives range widely. i am sure that they will keep many of us busy over the years ahead. on that note, i would like to thank you for listening and i would be happy to answer any questions. bis central bankers ’ speeches references apra ( australian prudential regulation authority ) ( 2013 ) “ implementing basel iii liquidity reforms in australia ”, apra discussion paper, may. available at http : / / www. apra. gov. au / adi / prudentialframework / pages / implementing - basel - iii - liquidityreforms - in - australia - may - 2013. aspx. apra ( 2014 ), “ apra finalises implementation of liquidity coverage ratio in australia ”, media release no 14. 22, november. available at http : / / www. apra. gov. au / mediareleases / pages / 14 _ 22. aspx. cheshire j ( 2015 ), “ market making in bond markets ”, rba bulletin, march, pp 63 – 73. cusbert t and rohling t ( 2013 ), “ currency demand during the global financial crisis : evidence from australia ”, rba research discussion paper no 2013 – 01. debelle g ( 2014 ), “ liquidity ”, speech at

statistical authorities. it will also pose a new problem to the supervisory authorities if one or more of the largest financial institutions become branches of foreign banks. the deposit guarantee schemes, too, are fundamentally national and thus difficult to adapt to comprehensive cross - border activities. and what is the role of the central bank if a branch of a foreign bank is so large that it has systemic importance and perhaps even is the largest retail bank? in financial stability, published by danmarks nationalbank in the spring, we summarised the problem as follows : “ where a branch is as large as or larger than the home - country entity, or a branch in an individual host country is so large that it has systemic importance and could affect the financial stability of the host country, very close collaboration should be established between the authorities across national borders, irrespective of the home - country supervision ”. these issues are discussed intensively by the authorities of the nordic countries. in danmarks nationalbank ’ s analyses of financial stability we have focused increasingly on the nordic groups. in practical terms, the nordic central banks have prepared a memorandum of understanding, which is available on our website. it describes the arrangements for cooperation in case of a financial crisis in a nordic banking group with subsidiaries in several nordic countries. financial integration has advanced further in the nordic countries than in the rest of the eu. some of the features currently observed in the nordic countries are beginning to show in the eu as well, and they will tend to strengthen after the enlargement of the eu with ten new member states. therefore, the nordic countries are spurring discussion of these issues at eu level. and the other countries are indeed very interested in learning more about the nordic experience. internationalisation also has other aspects. so far, danmarks nationalbank has issued government bonds via the copenhagen stock exchange, but trading in government bonds is no longer a predominantly national matter. danish government bonds are sold in large numbers to international investors. in recent years, the international trading platform mts has become the standard for trading in european government bonds. mts is now used by 12 eu member states, and the international investment banks are using the system. to obtain the best possible prices on danish government bonds we have chosen to move issuance to mts, whereby more international investment banks have become primary dealers and active players in the market for danish government bonds. this has intensified competition and at the same time modernised the market for government bonds. in the 1980s, denmark was