The transformation and management of risk – the third key function of financial institutions in modern societies – became the focus of attention during the recent financial crisis. I will turn to the dark side of this function later. For now, let me stress the potential value of risk management.
Clearly, on the basis of the fundamental notion on which the System is built, all governors will remain equally involved in future monetary policy decisions. However, they may not all have a vote at the same time. Moreover, the participation of NCB-governors will continue to offer checks and balances and enhance the quality of decision-making. Let me turn to the guiding principle of subsidiarity.