Claudia Buch: Financial stability and credit markets in Europe - opportunities and risks in the current setting
The views expressed in this speech are those of the speaker and not the view of the BIS.
It is nearly ten years ago to the day that the global financial crisis reached its initial peak. The global economic crisis that followed was the most severe since the Great Depression. In the wake of the crisis, reforms to the financial markets were introduced with the aim of making financial markets more resilient, and many of these reforms have already been implemented. After all, the stability of the financial system is a key prerequisite for an efficient and dynamic economy. Just as preventive medical care and a good immune system help to limit the effects of disease, a prudent approach coupled with good defences helps the financial system to mitigate the effects of economic shocks. The question today is how far the international financial system is better placed to deal with unexpected developments than it was just a decade ago.