We need strong institutions with clear responsibilities and which offer a framework for dialogue and formal agreement. This is all the more important at the global level. The scope of international cooperation is broadening significantly as our economies become increasingly connected. This is reflected in current efforts to strengthen the mandates and governance structures of existing  BIS Review 97/2010  1  international institutions. At the same time, existing informal fora are being adjusted and new fora developed. Examples are manifold. The G-20 has emerged as the prime group for global economic governance. The Global Economy Meeting of central bankers acts as the main forum for central bank cooperation. And the Financial Stability Board now represents all systemically important emerging market economies, and its mandate has been enhanced to strengthen the international financial architecture. These are encouraging developments and we must continue to pursue this path. The second area at the core of our efforts concerns reforms of the financial sector. This is also an area where further progress is needed. The extent of the financial crisis leaves no doubt that tighter regulations and supervision are required to overhaul the financial system. We know that the crisis originated mainly in institutions that had moved away from traditional banking and which increasingly relied on non-interest sources of income and nondeposit-funding. Reforms should be designed in a way that internalises the social responsibility that financial institutions bear for savers and society as a whole. How can this be achieved?
We have a great deal of work to do on these three issues in the months ahead, and I am confident that when bold reforms in these areas are undertaken, we will have achieved the necessary quantum leap in euro area governance. Thank you for your attention. 6  BIS Review 97/2010