And second, we need to move from rules to institutions through governance reforms. BIS central bankers’ speeches  1  1. From integration to convergence  In the euro area structural reforms are not a policy choice. They are a necessity that follows from the special way in which our monetary union is constructed. Let me explain why.
As I mentioned, in the current financial crisis, the condition of Japanese financial institutions has been relatively resilient. Fortunately, not much time has passed since Japan's crises during the 90s and senior management still vividly remembers the painful experience. This has led them to be cautious about taking on complicated forms of risk. This might not be the case in the future.