An appropriate balance between managing risk and enabling investment needs to be struck. In this connection, it is crucial that the regulatory framework does not impede, but provides a suitable environment, for sustainable growth. 4  BIS central bankers’ speeches  Ladies and gentlemen, ultimately, a sustainable recovery will need to be underpinned by higher investment.
Let me conclude by saying that, for the reform to be successful and conducted in a nondisruptive manner, it is essential that this working group reaches a broad-based consensus on alternative risk-free rates and on the best approaches for incorporating their use in financial contracts. This consensus should extend beyond this working group and include the wider financial sector community.