Banks, or more generally the credit institutions, in their role as intermediaries take upon themselves significant credit risks, while interposing between lenders (depositors) and borrowers. Credit risk is, by far, the largest risk faced by banks. The risk transformation, where they become borrowers to lenders and lenders to borrowers, leads to warehousing of risks in credit institutions.
Deshmukh, it is our pleasure to have Mr. Agustin Carstens with us. He was the Governor of the Central Bank of Mexico from 2010 to 2017 and a member of the BIS Board from 2011 to 2017. As a BIS board member, he chaired the Global Economy Meetings and the Meetings of Economic Consultative Council.