What financial system for the 21st century?

Sunday, June 26, 2011

Economics Working Paper WP11106


It is a pleasure to be back at the BIS and a great honour to deliver the Per Jacobsson Memorial Lecture. Allow me to begin by remembering the man who stood at this lectern a year ago – our common and much-missed friend, Tommaso Padoa-Schioppa. His wisdom touched and enlightened all of us in this room. He was at heart a central banker, but in the course of an incredibly varied and distinguished career, he had many other roles. He was probably proudest of the key part he played in European Monetary Union, initially as a senior official of the European Commission, then as rapporteur for the Delors Committee, and later as a founder board member of the European Central Bank; but always as a persuasive advocate of European integration.

In addition, he was a securities regulator, a Minister of Finance, Chairman of the International Monetary and Financial Committee, Chairman of the Basel Committee, Chairman of the Committee on Payment and Settlement Systems, Chairman of the Trustees of the International Accounting Standards Board, and much else besides. Indeed, as I remarked in introducing him last year, if he had held all his roles at the same time, he would have been entitled to eight seats in the Financial Stability Board.

What financial system for the 21st century?