Strengthening the financial architecture of the euro area According to a recent speech by the Governor of Bank of England, Mark Carney, in 800 years of financial history, financial crises have occurred roughly once in a decade. Given this history, we cannot realistically expect to fully eliminate the risk of financial crises, despite our best efforts in developing monetary and macroeconomic analyses and policies.
Therefore, to prepare for crises, we should try to make our economies and financial systems sufficiently “anti-fragile”, using a term made familiar by the author Nassim Nicholas Taleb. One task is to strengthen the resilience of financial institutions, markets and infrastructures, which is, as you are well aware, one of the key objectives of macroprudential policy.