For instance, the creation of the off-balance sheet vehicles at the centre of the recent market turbulence may be seen in part as a response to the crude regime for capital charges established under the original Basel Accord, under which liquidity facilities under a year in maturity were exempt. That is being remedied under Basel II. But it is a reminder that we need to be very careful to watch for these distortions in the regulation and oversight of payment systems and other infrastructures, so as to ensure that we do not inadvertently alter incentives in a way that may hamper the future development of the landscape. 42 This issue arises for example in the context of the establishment of ESCB-CESR standards for securities settlement systems. The Bank of England supports the principle of risk-based functional regulation, which implies that regulatory standards should be applied to a function – such as settlement – regardless of the status of the institution providing that function. We hope that further moves towards implementation will adhere to this principle, thereby establishing a level regulatory playing field at least between CSDs and ICSDs, but ideally also between traditional infrastructures and commercial banks offering infrastructural services. 43 Finally, with a wider spectrum of participants, issues arise around the way in which members interface with infrastructures. It is important to ensure that individual member behaviour cannot threaten the smooth-functioning of the system.
Chairperson, there can be no true development in our Bank without good and effective leadership. Leadership is required for us to achieve our objectives. We live in a dynamic world which calls for good leadership dedicated to hardwork, daily learning , fast thinking and acting swiftly and prudently at all times. Ladies and gentlemen, you will recall that not too long ago, we were all involved in the review of the Bank’s strategic plan and came up with the 2009–2012 Strategic Plan. In order to fully implement the goals and objectives of our strategic plan we need to enhance our leadership skills. It is against this background that this workshop was organised. Our desire is to constantly upgrade our leadership skills for the attainment of our goals and objectives even in the face of daunting challenges. In conclusion, I wish to urge you to actively participate and take a keen interest in the deliberations of this workshop. It is our expectation that you will have an opportunity to carry out an appraisal of your individual leadership style and refine it in order to impact positively on policy and the way the Bank operates. With these few remarks, it is my pleasure to declare the workshop officially open and to wish you all fruitful deliberations. I thank you! 2  BIS Review 107/2010