With hindsight, it is easy to talk about making a mountain out of a molehill, but the lack of problems was of course largely due to the fact that they had been foreseen and due precautions taken. One positive consequence of all the fuss around the new millennium was that openness regarding security and IT was increased and that attention was drawn to the need for routines to manage crises. At the same time, it can also be concluded that the IT systems proved to be fairly robust. The consequences of the terrorist attacks in the USA on 11 September last year could actually be handled to a large extent as there were security arrangements for most of the central financial systems. However, these events emphasised the importance of taking into account such potential threats as terrorism and other physical threats to the financial system when establishing security routines. My second reflection is of a more human nature. After having given a whole speech on IT in the financial sector it is easy to give the impression that the banks and other institutions operating on the financial markets consist merely of technology and money. That is not the case. Fundamentally they are not about technology or money, but about people and the relations between people. All successful managers of financial companies, particularly bank managers, are aware of this. Technology is a useful aid, but a customer who does not receive a respectful, personal and competent reception at one bank will choose another next time.
Jaime Caruana: The New Basel Capital Accord: why we need it and where we're at Remarks by Mr Jaime Caruana, Governor of the Bank of Spain and Chairman of the Basel Committee on Banking Supervision, at the Fifth Meeting of the Asian Program of the Institute of International Finance, Beijing, 17 November 2003. *  *  *  I’d like to thank the Institute of International Finance and the Bank of China for hosting this discussion on the outlook for banking and finance in Asia. For many reasons, it seems especially appropriate to discuss this topic here in Beijing. The tremendous growth of China’s economy, its recent accession to the World Trade Organisation, and the wide scope of change that is occurring here has made China a reference for the world. I am very pleased to have this opportunity to discuss with you some of the efforts of the Basel Committee on Banking Supervision to promote financial systems better able to sustain growth and more resilient during periods of distress. It is an honour to address this forum, but I must confess that I have come to listen and to learn. The message I am consistently hearing is on the one hand one of strong support for the principles of the New Capital Accord and on the other a desire for the best standard for financial systems in each country. Too many examples have illustrated the economic costs and social unrest that weakly capitalised and poorly managed banks can inflict on an economy.