This event with its global participation is a true reflection of these values. [Introduction] On this occasion of hosting the ICBS Conference, let me emphasize that the Basel Committee’s role as an international standard setter has progressively solidified over the years, and its work has become equally important for both developed and emerging market economies.
Let us remind ourselves of the major shortcomings of the Basel framework prior to the Global Financial Crisis – (1) too little capital with too little going concern loss absorption capacity, (2) excessive leverage, (3) neglect of liquidity risks, (4) weaknesses in banks’ resolvability and (v) insufficient macro-prudential considerations.