And on a side note: appropriate capital rules and caps on lending to governments also have a disciplining effect on national fiscal and economic policy. Former IMF chief economist Kenneth Rogoff considers this effect to be stronger than that of stricter fiscal rules. 4  Conclusion  Ladies and gentlemen, resilient banks are the essential building block of financial stability.
With a view to regulation we have come a long way since the recent crisis. We have reformed the regulatory framework in a way that will help to increase banks’ resilience. At the same time we have acknowledged the fact that we have to look beyond the individual bank if we want to safeguard financial stability.