It also has the ability to make Recommendations within the Bank, to HMT and to any other person, with a view to achieving its statutory objectives. 2  All speeches are available online at www.bankofengland.co.uk/speeches  2  The post-crisis reforms embody the lesson of that: keep up… …with the risks the system faces. And with the shape of the system as it shifts. To keep the system capable of serving in the bad times as well as the good. Today – declaring my obvious conflict of interest – I want to look back to consider how, over five years, we’ve got the system to a place where it can serve the economy in bad times as well as good. And then I want to look ahead, to the macro trends of Brexit, borrowing and the unbundling of banking and the challenges they present to keeping up. Looking back, we have largely corrected the fault lines that underlay the crisis. In particular, the banking system has been strengthened. Not everyone agreed it should be strengthened so much. But it was obvious that it needed to happen. The economic costs of major banks getting into distress are vast. So they must be able to withstand – and keep lending through – even very severe and rare economic events. That’s why we stress test them to economic scenarios more severe than the financial crisis. It’s why the largest banks must fund themselves with 10 times more capital than they did before the crisis.
Jaime Caruana: Coordinating regulation and supervision of banks - Basel II and beyond Remarks by Mr Jaime Caruana, Governor of the Bank of Spain and Chairman of the Basel Committee on Banking Supervision, at the Global Operational Risk Forum of the Risk Management Association, Paris, 24 October 2003. *  *  *  I would like to thank the organizers for inviting me to this forum on operational risk. As the new Chairman of the Basel Committee on Banking Supervision, it is a pleasure for me to join you, the members of the Risk Management Association, in a discussion about the latest trends in capital and risk management. Overview Many of you have travelled great distances to join us here. Perhaps part of the attraction was the chance to enjoy the charms of autumn in Paris. But the main reason is that you believe risk management matters. Indeed, from their first meetings in Philadelphia almost 90 years ago, the members of the Risk Management Association have long helped to promote sound risk management, offering training, educational resources, and forums such as today’s event to financial professionals. Moreover, for more than 80 years the RMA has emphasised the analysis of quantitative data in helping to evaluate risk through its collection and annual publication of financial data and benchmarks. Through your efforts, and the efforts of associations similar to the RMA, you are helping to advance the state of the art in the management of credit, market, and operational risk and to encourage responsible banking practices.