jens weidmann : monetary policy after the crisis text of the imfs distinguished lecture by dr jens weidmann, president of the deutsche bundesbank and chairman of the board of directors of the bank for international settlements, frankfurt am main, 14 september 2017. * * * 1. introduction dear volker wieland ladies and gentlemen it was on this day exactly ten years ago – 14 september 2007 – that savers lined the street in front of the uk bank northern rock in order to rescue their savings. they had lost confidence in their bank upon hearing the news that it had applied for an emergency loan from the bank of england. this financial assistance was the last hope for northern rock, which by that time was unable to obtain funding from the markets. given the prospect of loan losses, the institution was no longer able to find any takers for its piles of mortgage - backed securities ( mbs ), which in the past had been a key source of funding for the bank. this was the first run on a uk bank in 150 years. as we now know, northern rock would not be the only bank to run into trouble owing to the financial crisis and subsequent economic crisis. the financial market turmoil caused the sharpest drop in gdp in post - war history. the severity of the contraction caught not only the general public, but also economists, off guard. as recently as 2003, nobel prize winner robert lucas1 had declared the central problem of depression prevention to have been solved. a year later, ben bernanke, 2 then a governor at the usfederal reserve, delivered a speech in which he laid out what he regarded as the most striking economic development in the past 20 years : the extreme economic stability in the industrial countries. much like francis fukuyama, in his influential book the end of history and the last man, hoped that the end of the cold war would put an end once and for all to the clash between the major ideologies, so, too, did many economists think the end of major economic crises was within reach. this assessment rested on the observation that, since the mid - 1980s, inflation and gdp had been moving with an unprecedented degree of synchronicity. this is why ben bernanke ’ s speech was entitled, fittingly, “ the great moderation ". he attributed the increasingly stable pattern of economic development primarily to better monetary policy : in the 1960s and 1970s, economic and central banks were still beholden to the idea that monetary

francois villeroy de galhau : financial supervision and the role of national authorities in europe opening address by mr francois villeroy de galhau, governor of the bank of france, at the autorite de controle prudentiel et de resolution ( acpr ) conference on financial supervision, paris, 18 september 2018. * * * mr. president [ m. draghi ], ms. chair [ d. nouy ], mesdames, messieurs, bonjour et bienvenue a paris, it is a particular pleasure to welcome you to this conference on financial supervision and the role of national authorities in europe. what better way to inaugurate the new headquarters of the acpr – france ’ s supervision authority – than to bring in colleagues and experts from across the continent. i urge you to look at a few street names in the neighbourhood : this borough is called in paris “ quartier de l ’ europe ” – very much in the spirit of what we are doing together at the ssm. i warmly thank president mario draghi for being here. before giving him the floor, let me stress that we all have reasons to be proud of what has been achieved for banking union in the past few years. but we must not be complacent. there are two priorities : one in substance, and one in method. * * i. our priority in substance : strengthening the second pillar on resolution now that we ’ ve had the single supervisory mechanism up and running for four years, it ’ s easy to forget that there were many sceptics who were sure that such a union could not be achieved. but, as mark twain would have said, “ [ we ] didn ’ t know it was impossible so [ we ] did it. ” today it is a tangible reality. in fact our supervisory practices have been harmonised upwards. our legal framework is stronger thanks to the single rulebook. and european banks are sounder – the cet1 solvency ratio for major institutions has increased by more than 3 points since 2014 ( from 11. 3 % to 14. 6 % at the end of last year ). daniele [ nouy ], you deserve our congratulations on this achievement! yet banking union ’ s second pillar, the single resolution mechanism ( srm ), is still incomplete. yes we have already managed our first cases, substantially improving the health of a number of banks, notably in spain and italy. but making