As a central banker, I have a special interest in developments in the money markets, so this will be my first main topic. Subsequently, I will discuss some regulatory aspects such as the Liquidity Coverage Ratio and its possible impact on capital markets.
Last year's agreement on the framework for Basel III was an important step, and the Federal Reserve is committed to its timely adoption. Its requirements for more and higher-quality capital and more-stringent liquidity buffers should increase the stability of the financial system and reduce the probability of future crises.