To this end, banks and other lenders must hold capital and liquidity to cover more of the risks they are taking, and they must have the capability to know what those risks are and to manage them effectively.
Conclusions Today, I have offered my views on systemic risk, which might have raised more questions than answers for central banks. In concluding my remarks, I would like to stress that central banks must continue to pursue these issues to discharge their responsibilities. The responsibilities arise from the following facts.