In his speech, Dr Ackermann addresses the major issues currently discussed in the debate on financial market regulation:

 

•Financial transaction taxes or activity taxes for the financial sector: the negative consequences of such bank taxes will by far outweigh any potential benefits.

•Regulation of Systemically Important Financial Institutions (SIFIs): Drawing up lists of SIFIs would be conceptually wrong and will prove to be counterproductive, as systemic importance is anything but static, and this approach threatens to undermine the effectiveness of macro- and micro-prudential supervision, as it narrows the focus on threats to systemic stability.

•Market infrastructure: More robust market infrastructure is needed, but costs and benefits should be carefully considered, and innovation should not be stifled. It would e.g. be inappropriate to force forex trading onto new platforms.

•EU supervisory structure: Regarding micro-prudential oversight, a lot will depend on whether the three new supervisory authorities will enjoy the full backing of the EU Commission and national supervisors. The European Systemic Risk Board in charge of macro-prudential supervision will only be successful if member states comply with its recommendations.

•Nobody should underestimate the changes that have already been made to financial regulation around the world: A substantial overhaul of the capital requirements framework, which will bring a substantial increase in both the quantity and quality of capital; a global standard for liquidity requirements; the comprehensive Dodd-Frank Act in the US; stricter guidelines for remuneration policies; the introduction of bank levies in several European countries; or the complete re-organisation of financial supervision in the EU.  It is clear that the combination of these changes makes for a whole new framework for banks in which to conduct their business. It is also clear that these changes will have - and are already having - a material impact on banks' balance sheets and profitability.

Concluding, Dr Ackermann emphasised that the financial industry is ready to continue contributing to the quest for a more stable and more resilient financial system.