bank. the point is not to claim there is an optimal supervisory structure that fits any country ’ s circumstances. rather, it is to note that a system such as the one we have in france has proved very useful in allowing for an in - depth knowledge of the banking sector and the various financial institutions. it also allowed for very swift and timely exchanges of information, and, as a result, allowed us at the central bank to quickly pass sensitive judgments, not least on the usefulness of injecting liquidity. second, the crisis also revealed that, as far as supervisory infrastructure is concerned, simple, robust and pragmatic plans have shown their efficiency. thirdly, the crisis stressed the need for supervisory structures to adapt to their environment. this is very true for europe. i guess it is also true for other countries and regions. let me just say that, while adjusting our institutions and tools to changes in financial systems, we should be pragmatic and completely in tune with reality rather than based on a theoretical scheme or vision. let me conclude by stressing one point. we are going through very challenging times, in some respect even unprecedented times. economic and financial forces are at play and recent events are the consequences of such forces. that said, we should not completely disregard the importance of what robert shiller terms “ attention cascade ”. for him, a cascade is the situation in which economic events and problems become the subject of more and more talks and stories, until they become the dominant public thinking. we, as policy makers, have a very critical role to play to try and ensure that such qualitative “ attention cascades ” remain aligned with facts and reality. today, policy making is also about confidence building and financial education. thank you very much ladies and gentlemen.

funds. this is a significant shift. needless to say, restoring liquidity remains a pressing priority. inter - bank markets have recently shown modest signs of improvements. yet, there is still some way to go. to this end, central banks have mobilized considerable ammunition. a process underway for over a year has culminated in the central banks having adjusted their operational frameworks in various areas. the maturity and currency of their facilities have been expanded. the range of eligible counterparties has been broadened. the tender procedures have been modified with a view to ensure unlimited amounts of central bank money. the list of collateral for refinancing has been widened. enhanced international coordination between the monetary authorities is ensuring that their actions are part of a consistent overall strategy. these measures are highly exceptional. as such, they should greatly contribute to restoring confidence and a smooth functioning of money markets. governments have moved aggressively to support banks'solvency and resilience. since the paris declaration by euro area member - countries, europe, under the leadership of france, is acting according to what i consider a sound and consistent action plan. i won ’ t enter into the details. just bear in mind the three following elements. first, authorities are extending guarantees to banks ’ refinancing so that they can, in turn, properly finance the economy. second, very significant reforms of accounting rules are now being implemented. basically, these reforms allow banks to transfer instruments previously marked to market value to portfolios where that will no longer be the case. they also provide for greater flexibility in marking to market value assets whose market has shut down. third, and lastly, governments have confirmed their willingness, when warranted, to step in and support banks ’ capital. what about france ’ s actions? the government and parliament very quickly put meat on the bones of the european principles. a new bill has been passed, which provides for two things. first, it sets up a eur 320 billion funding vehicle to guarantee banks ’ medium - term refinancing ( i. e. up to five years ). this vehicle is strictly supervised by the french government and the banque de france. the guarantee is granted for a fee, so that the beneficiaries pay costs corresponding to normal market conditions. second, the law also creates a state - owned company empowered with eur 40 billion and entitled to subscribe to banks ’ subordinated debt issues or preferred shares. as you know, six banks have expressed that they will