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Restoring Confidence in the Financial System – Speech by Dr Andreas Dombret

Restoring confidence in the financial system – A speech by Dr Andreas Dombret Member of the Executive Board of the DEUTSCHE BUNDESBANK [GERMAN CENTRAL BANK] at the Generation Forum Euro Finance Week Frankfurt on Wednesday, 21 November 2012.

Ladies and gentlemen,

The financial system is more resistant today than it was a few years ago. The G20 have launched a wide range of reforms – from financial institutions to financial markets to financial instruments.

Banks have substantially improved their resilience by increasing both their capital and liquidity. Work is under way to strengthen oversight and regulation of the shadow banking system. Derivative markets are being transformed to reduce systemic risks.

Yet the financial system is still not as safe as it should be. More steps are necessary.  In my short remarks, I will point out three of these steps:
• ending too big to fail;
• paying greater attention to the consistency of regulation;
• reviving individual responsibility.

The complete speech can be downloaded here.

1 Introduction
2 Ending Too Big To Fail
2.1 Separating Banking Functions?
2.2 Introducing Credible Resolution Regimes
3 Paying Greater Attention To Consistency
4 Implementing Basel III
5 Reviving Individual Responsibility
6 Conclusion