of european banks – around 7, 000 in all – are smaller institutions. the lack of proportionality is a serious concern. in my eyes, it entails at least three issues. first of all, small banks simply do not have the resources to cope with the sheer volume of regulation. employing another eighty employees for compliance is quite manageable for a large international bank. but to a small institution with only fifteen or twenty ftes, another two administrative staff members might well no longer be affordable. thus rules create distortions in banking business. new regulation typically need not worry about such business distortions if it serves the greater good. anti - smoking regulation, for instance, is actually intended to interfere with the tobacco market. but in the case of banking regulation, the situation is different. some requirements developed for large international banks have proved ineffective for small credit institutions, simply because these enterprises are less complex, do not engage in comparable business fields and are thus exposed to fewer risks. ineffective regulatory burdens are the second issue for smaller institutions. the third concern is about potential financial stability issues. due to their local focus, small institutions perform an essential function in funding small and medium - sized enterprises. and during the crisis years, small institutions have proven to be more robust – not least due to their simple and less risky business models. thus one - size - fits - all - regulation threatens the healthy diversity of the european banking landscape. 2 / 4 bis central bankers'speeches 3. sometimes small is beautiful, and less is more : the small banking box this has spurred the european commission to take action. in november 2016, it put forward its proposals for strengthening proportionality as part of the general overhaul of eu banking regulation. these proposals include important changes to the small print, and i am certain that we will be able to roll out a number of meaningful initial improvements. that said, the proposals don ’ t go far enough. therefore, i strongly support more graduated regulation, including a simple set of rules for small and non - complex banks. i call this more fundamental solution the small banking box. the blueprint for this idea was drafted in a german expert working group. the aim of this group was to develop specific proposals on how to fundamentally alleviate the burden of regulation on small institutions with simple business models. and it delivered on that aim. the outcome is a “ non - paper ” which the federal ministry of finance put before the competent expert group of the european commission in june this year. let me briefly

amando m tetangco, jr : competitiveness, growth, and equity in a globalizing economy – a central banker ’ s view welcome remarks by mr amando m tetangco, jr, governor of the central bank of the philippines ( bangko sentral ng pilipinas ), at the 46th annual meeting of the philippine economic society, manila, 14 november 2008. * * * the distinguished officers and members of the philippine economic society led by dr. aldaba, fellow central bankers, our friends from the media, special guests, good morning. on behalf of the monetary board, i welcome all of you to the bangko sentral ng pilipinas, the venue of the 46th annual meeting of the philippine economic society ( pes ). to us, the annual meetings of the pes have always served as an invigorating collegial setting among professional economists in the philippines for the dissemination of research, incisive debate, and careful consideration of critical policy issues. this year ’ s meeting is being held in conjunction with the 11th international convention of the east asia economic association or the eaea. this marks the first time that our country is hosting eaea. it is therefore with keen anticipation that we look forward to the discussions ahead, especially in light of the timeliness of this year ’ s pes theme of “ competitiveness, growth, and equity in a globalizing economy. ” at the same time, eaea ’ s theme of “ regional risk management in east asia ” is particularly relevant given the present global financial crisis that is likely to be the deepest in decades. given the broad - ranging impact of the financial market turmoil, the scope of the conference papers addresses varied issues : this includes the need for complementary interventions in the areas of energy and infrastructure ; human capital investments ; governance ; competition policy ; and the need to integrate the poor into the mainstream of development. in other words, there would be much food for thought along these lines in subsequent discussions. on my part, i will focus on the conference theme from the point of view of a monetary policymaker. globalization and the great moderation ladies and gentlemen. prior to the current economic and financial turmoil, the world had experienced a prolonged period of above - trend growth. an important driving force behind this is globalization – as manifested by an unprecedented increase in the trade in goods and services around the world, coupled with an even greater expansion in the cross - border movement of capital flows. in fact