In addition, we have undertaken a broad based program of initiatives to build a more robust over-the-counter derivatives infrastructure through, among other measures, a central clearing house for credit default swaps; to strengthen the financial cushions held by central counterparties against the risk of default by a participant; and to reduce vulnerabilities in secured funding markets. These initiatives will take time, but we expect to see substantial progress over the next two quarters. I look forward to your questions today and working with you as we move ahead in building a more effective financial regulatory framework for the United States. Thank you. BIS Review 95/2008  5
But in some cases the best judgment that it may be possible to make is that the supervisory authority is actively working to establish the necessary capability - which is essentially the view that we have taken in relation to the People’s Bank of China in licensing banks from the Mainland; second, it is important to realize that, in undertaking consolidated supervision, the primary responsibility of the home supervisor will be to safeguard the interests of the parent bank. While this should hopefully help to promote the safety and soundness of the banking group as a whole, including overseas banking subsidiaries, the interests of home and host supervisor may not necessarily coincide. Despite this, the various regulators should, of course, try to cooperate to the maximum extent possible; third, and related to the previous point, cooperation will only be possible if there is an adequate two-way flow of information. However, the main focus of consolidated supervision sometimes appears to be for the home supervisor to obtain information from the host supervisor. There is less emphasis on reciprocal flows. For example, in the recent paper prepared jointly by the Basle Committee and the Offshore Group of Banking Supervisors on Supervision of Cross-Border Banking, only four paragraphs out of BIS Review 55/1997  -5-  forty-three are devoted to information flows from home supervisor to host supervisor. In our experience, home supervisors can be reluctant to share information with us, either at the time of authorization or, more particularly, if serious problems arise in the parent bank.