capital requirements regulation ( crr ). they have been in force from 1 january 2014. finally, in 2012, the eu heads of states and governments decided on the banking union, which also started to come into force in 2014 as far as the ssm is concerned. the changes have been profound. i will try to give you a flavour of the depth and breadth of this new, multifaceted regime, starting with crd iv and crr. both the quantity and quality of capital that banks are required to hold are now much increased. whereas up to the end of 2013, banks could operate with as little as 2 per cent of capital, they need now at least 4. 5 per cent of a more tightly defined equity. furthermore the new regulatory framework introduces the possibility for macro - prudential authorities to impose several additional capital requirements, known as buffers, to all banks in their jurisdiction. the central bank has been designated as macro - prudential authority for this purpose in march 2014. from 1 january 2016, as agreed throughout europe, all banks will have to begin building one of these buffers, the capital conservation buffer, for an additional 2. 5 per cent of riskweighted assets. liquidity requirements, which were domestic until then, are now harmonised at a much tighter level under the liquidity coverage ratio. the existing central bank liquidity requirements which were introduced in january 2007 are being replaced by this lcr which will be fully binding in 2018. the crr also introduces a net stable funding obligation to enhance a bank ’ s funding profile into the medium term and a leverage ratio requirement which caps banks assets to no more than 33 times tier 1 capital. finally, the quality and granularity of banks ’ regulatory reporting have been also significantly enhanced from january 2014 by the crr and subsequent standards and guidelines of the european banking authority, covering financial reporting, credit risk, operational risk, own funds and capital adequacy ratios. the transformation of the regulatory framework for banks, from what it was up to the end of 2013 to what it is becoming, does not stop at prudential supervisory requirements. lessons were also learned about the way to resolve the difficulties of banks that are failing or likely to bis central bankers ’ speeches fail. this has entailed another change in regulatory framework through the adoption of the bank recovery and resolution directive ( brrd ) and the enactment of the single resolution mechanism ( srm ). the brrd and the srm aim

haruhiko kuroda : the bank's semiannual report on currency and monetary control statement by mr haruhiko kuroda, governor of the bank of japan, before the committee on financial affairs, house of councillors, tokyo, 10 november 2022. * * * introduction the bank of japan submits to the diet its semiannual report on currency and monetary control every june and december. i am pleased to have this opportunity today to talk about recent economic and financial developments and about the bank's conduct of monetary policy. i. economic and financial developments i will first explain recent economic and financial developments. japan's economy, despite being affected by factors such as high commodity prices, has picked up as the resumption of economic activity has progressed while public health has been protected from the novel coronavirus ( covid - 19 ). overseas economies have recovered moderately on the whole, but slowdowns have been observed, mainly in advanced economies. exports and industrial production have increased as a trend, with the effects of supply - side constraints waning. corporate profits have been at high levels on the whole, and business sentiment has been more or less unchanged. in this situation, business fixed investment has picked up, although weakness has been seen in some industries. the employment and income situation has improved moderately on the whole. private consumption has increased moderately, despite being affected by covid - 19. with regard to the outlook, japan's economy is likely to recover, with the impact of covid - 19 and supply - side constraints waning and with support from accommodative financial conditions and the government's economic measures, although it is expected to be under downward pressure stemming from high commodity prices and the slowdowns in overseas economies. the year - on - year rate of change in the consumer price index ( cpi ) for all items excluding fresh food has been at around 3 percent due to rises in prices of such items as energy, food, and durable goods. regarding the outlook, it is likely to increase toward the end of this year due to such price rises. the rate of increase is then expected to decelerate toward the middle of fiscal 2023 because the contribution of such price rises to this cpi is likely to wane. thereafter, it is projected to accelerate again moderately on the back of improvement in the output gap and rises in medium - to long - term inflation expectations and in wage growth. 1 / 2 bis - central bankers'speeches