In sketching the challenges ahead in the 21st century, as befits today’s theme, I would like to share with you some personal reflections on a possible future direction. I shall argue that in order to build most productively on past achievements in the pursuit of financial stability, we should strive for a better marriage between the micro-prudential and macro-prudential dimensions of the task.
We should, in other words, consolidate a shift in perspective that is already taking place, complementing the micro-prudential perspective with increased awareness of, and attention to, the macro-prudential facet. Banking supervisors have a key role to play in this endeavour, and, indeed, have already taken an active part in its early stages. But other authorities are inevitably involved.