Chair Yellen recently discussed this topic 3 and the recent rule that removes large, non-complex firms from the qualitative assessment of the Comprehensive Capital Analysis and Review (CCAR) is a recent example.4 This tailoring principle drives efforts to mitigate risks to financial stability, while minimizing the collective burden on financial institutions, particularly for community and mid-sized banks, and allocating supervisory resources most efficiently. As a result, the standards and expectations from supervision become more stringent as a firm becomes larger and more complex in ways that pose risks to the broader financial system. With that background in mind, I’ll turn to the question of “optimal” bank capital that is the topic of this conference. To me, the question of optimal capital implies some type of a trade-off. This thinking is not limited to bank capital, but reflects all of the potential supervisory and regulatory tools such as capital and liquidity standards or a resolution framework. One can frame this trade-off simply in terms of two objectives often attributed to supervision: ensuring the safety and soundness of financial institutions and promoting efficient financial intermediation that supports the growth and stability of the U.S. economy. Other objectives could include, for example, reducing the potential spillover costs associated with distress and promoting fair and transparent financial services for consumers. In many cases, the objectives of enhanced resilience and efficient financial intermediation are mutually reinforcing.
The systematic work of our distinguished archaeologists and of the dedicated central bank employees over the years has helped in materialising the efforts for presenting the history of the Albanian currency, from the axes of the Hoard of Torovica, to the first coins struck in Dyrrhachium, to those in circulation throughout various historic periods, up to modern days. Through over 30 exhibits and 5 educational rooms in the Museum, we show interactively the ancient history of our currency. The permanent exhibition in the lower floor displays collections from monetary systems that have existed in our territories over the past two thousand years. They are part of the numismatic collection of the Bank of Albania and the Albanian Institute of Archaeology. We have selected and studied them meticulously in a close and long process of cooperation with archaeologists, numismatists, historians and ethnologists in Albania. I take this opportunity to thank them for their valuable contribution. Our Museum, however, is not just a money museum. It is also the museum of the central bank, which considers financial education as an essential objective. The public needs to be informed in order to be able to make judicious and sound financial decisions, which, in turn, contribute to financial stability. That is why we have dedicated the upper floor of the Museum to financial information and education. Through a number of activities, educational publications, lectures, films, and applications, irrespective of their age, visitors learn about financial products and system.