Perhaps more relevant, given the theme of this conference is international ramifications of domestic policies, this research suggests that reciprocity of those policies can further reduce the likelihood of a crisis by more than if countries act alone. Of course the countercyclical capital buffer is just one tool, and its application is limited to banks. So I would like to use the second part of this speech to talk about the financial stability implications of the growth in market based finance in recent years. This growth is welcome, not least because it reduces the reliance of both savers and borrowers on the banking system. But it is not without risks, partly because macroprudential policy for market-based finance is less well developed than that for banks. I will argue that those risks can be 1 2  As quoted in Bush (2012); for ’ole read hole, a handy place to hide one’s money (Grote and Marauhn 2006). IMF-FSB-BIS (2016). 2  All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx  2  reduced by the development of strong institutions and deep domestic capital markets by the recipients of global capital flows, and by measures to reduce the risk of sudden stops such as those recently proposed by the FSB to address structural vulnerabilities from asset management activities. There are two themes that recur throughout these remarks.
The growing interest for attending the Conference confirms once again the significant contribution of the Conference to the enrichment of the knowledge and exchange of experience of the representatives of the central banks in regional and international frames. Nevertheless, the Conference would not be a unique treasure of knowledge and experience, if it did not include the representatives of the domestic financial system and the payment service providers, which by their continuous active participation and involvement in the panel discussion, contribute to the thematic comprehensiveness of the Conference. The Conference will cover the latest developments in payment and securities settlement systems, as well as payment services on global, European and national level. In the global context, Mr Klaus Löber, the esteemed expert from the European Central Bank, will elaborate on the new developments in the area of implementation of the PFMIs, work on retail payments, cyber security, digital innovations and correspondent banking. These are very important issues for central banks given that we also promote the safety and efficiency of payment, clearing and settlement, thereby supporting financial stability and the wider economy. In addition, the developments in the compliance area regarding the prevention of money laundering, financing of terrorism, insider dealing, fraud, corruption and other criminal offences are in the focus of the Conference, as well. In this context, we appreciate the contribution of Mr Oliver Schufmann, the representative of Commerzbank, who will present their experience regarding the compliance activities.