mark my 40th year as a central banker. ladies and gentlemen of bmap. to me, this is a sign that good things will continue to develop as we continue our partnership. a partnership for a stronger, more responsive, and more responsible banking system that promotes sustained and inclusive growth. together, let us work on this legacy. finally, i thank bmap for its continuing support to the bsp ’ s programs. again, my congratulations to bmap as well as its leaders and members, past and present. mabuhay ang bmap! mabuhay ang ating mahal na bansang pilipinas! maraming salamat sa inyong lahat. bis central bankers ’ speeches

vitor constancio : financial regulatory reform and the economy speech by mr vitor constancio, vice - president of the european central bank, at the 20th annual hyman p minsky conference, organised by the levy economics institute, new york, 15 april 2011. * * * it is indeed a pleasure for me to participate in this 20th conference to honour hyman minsky and i want to thank president papadimitriou for inviting me. i. lessons from the crisis and the regulatory response four years after the eruption of the financial turmoil, which quickly turned into a full - blown financial crisis after the collapse of lehman brothers in 2008, the international banking and regulatory landscape is now being changed in ways that significantly impact the future of the financial sector and the economy. the speed of the propagation of the crisis from one country to another as well as from one sector to another posed exceptional challenges for banks, regulators and supervisors alike. 1. key lessons drawn from the crisis the crisis had many causes, often intertwined and mutually reinforcing. a key area where several shortcomings were detected, and therefore where decisive actions had to be taken, concerns the regulatory framework, both from a micro - as well as macro - prudential perspectives. considering the set of causes that contributed to the crisis, the reform of financial regulation has addressed the following points : first, excessive asset growth in the financial sector during periods of boom has to be contained, thus reducing the risks of asset price bubbles as well. in this context, it has to be acknowledged that overly accommodative monetary policy may have contributed to inflating the stock market and, subsequently, the housing markets. therefore, a cautious monetary policy of “ leaning against the wind ” could help to address this problem. this policy should be based on the re - definition of price stability objectives to capture longer time horizons as well as on a more systematic incorporation of financial and monetary developments in the assessment of risks to price stability. however, it should under no circumstances imply any mechanical reaction of central banks to asset price movements. the main response must come from a reduction of the pro - cyclicality of the financial system by means of macroprudential policy measures. as we have seen in the recent crisis, pro - cyclicality can be exacerbated by certain features of the regulatory capital framework as well as by accounting rules. consequently, the implementation of effective macroprudential policies, like countercyclical capital buffer