[2] This was the first such general warning published by the ESRB since its creation in 2010, reflecting the exceptional times in which we live. A key message therein was the crucial importance of ensuring the continued resilience of our financial system. Resilience is key in helping the financial system to deliver on its ultimate goal of supporting the real economy.
There are two facets of resilience that are vital. First, the capacity to withstand an immediate shock. [3] And second, the ability to adapt effectively to new conditions. [4] In my remarks today, I will explore these two aspects of resilience, and how we can best ensure that they are met across the financial system.