I want to focus on three specific challenges – (A) implementation of expected loss provisioning, (B) supervisory safeguards against money laundering and terrorism financing, and (C) financial innovation and cyber security. [A. Expected loss provisioning]  One such challenge is the implementation of the expected loss provisioning rules, IFRS9. Continued involvement of the Basel Committee in its implementation is paramount.
So it’s all well and good giving advice on how things should have been done, with the benefit of hindsight. However, lessons were also learnt while we tackled and analysed the crisis and extensive institutional reforms have already been adopted. First, the fiscal rules of the Stability and Growth Pact were tightened and a fiscal compact was agreed upon.