Financial fragmentation in turn disrupted both monetary and fiscal stabilisation as public and private sector borrowers suffered the effects of the so-called “bank-sovereign nexus”. This failure of financial integration, and its effect on shock absorption, is an important reason why the crisis has been more protracted in the euro area than in other advanced economies. Hence a strong policy response has been needed.
*  *  *  Mr Chairman, Lawrence Mlotshwa; Mr President, Tom Boardman; Chief Executive Officer, Mr Mnisi; fellows of the Institute of Bankers, ladies and gentlemen, I wish to start my address by thanking the Institute for its invitation to me to be the keynote speaker tonight.