In many ways, U.S. banks have been in the vanguard in applying technological advances to their products, distribution systems, and management processes, with such applications and innovations as ATMs, home banking, securitizations and credit derivatives. Such efforts, combined with greater attention to pricing their services and measuring their risks, have had material effects on the increased strength and profitability that our banks have seen.
It is my view that the main way to achieve accountability is through being transparent and open. In passing, I note that transparency also enhances the effectiveness of the central bank. A central bank that is better understood is also more successful. Apart from the activities I have already mentioned, transparency is achieved in several ways.