IADI Secretary General Mr David Walker; Executive Secretary of the Institute for the Protection of Bank Savings (IPAB), Mexico, Mr Raúl Castro, our kind host; President and Chief Executive Officer of the Canada Deposit Insurance Corporation and Chairperson of the Regional Committee of North America, Mrs Michèle Bourque; Chief Executive Officer of SEDESA and Chairperson of the Latin America Regional Committee of IADI, Mr Alejandro Lopez; members of the Caribbean Regional Committee and respective IADI committees and participants, welcome to the 3rd Americas Deposit Insurance Forum.

I tender an apology for Mr Noel Nunes of the Deposit Insurance Corporation of Trinidad and Tobago and Chairman of the Caribbean Regional Committee, for his unavoidable absence. On behalf of Mr Nunes, I thank the members of the IADI Secretariat, the Latin America Regional Committee and the Regional Committee of North America for their efforts in convening this important Forum for the third year.

At the 1st and 2nd Forums of the Americas it was acknowledged that our various Deposit Insurance Agencies were of diverse sizes, operating in diverse markets with various mandates, from paybox to risk minimizer. Notwithstanding, with technological advances in financial services, fintech, globalization of markets has deepened and has the potential to further deepen to levels never before experienced. It is nearing a decade since the last financial crisis ended where globalization allowed liquidity in financial markets to dry up with remarkable 2 efficiency. So I think regulators, deposit insurance agencies and central banks, we might need to see our challenges going forward as being able to take on proportions potentially greater than, or at best, the same extent as the last financial crisis. The maturity gap among Deposit Insurance Agencies is no longer moot.

We have been left now with the lessons from the last crisis and the Financial Stability Board Key Attributes of Effective Resolution Regime for Financial Institutions are the new rules. This is now the level playing field in which Deposit Insurance Agencies/Deposit Guarantee Schemes (DIAs/DGSs) must explicitly define their roles regardless of the time of their establishment, or their size. As the guardians of the framework to provide the funds to ensure public confidence in times of bank insolvencies, DIs have a natural operational incentive to play a key role in resolutions and allow the level of transparency and confidence that is required of and by stakeholders in this process.

Jurisdictions have now defined the goals very clearly; it is macro prudential regulation and financial stability. Given past experience with respect to the impact of the global crisis, all our efforts as cogs in the wheel of regulation must focus on achieving this outcome. Many jurisdictions have and others are seeking to align their framework with the FSB Key Attributes. Jurisdictions are assigning resolution roles among the various regulators, deposit insurers and the central banks. Research shows that the rationale for the assignment of roles include, size and complexity of the financial system; history of dealing with failed banks; the natural incentives of the respective agencies for the resolution roles assigned; and the jurisprudence and legal framework of the country.

Whereas many countries, in particular the FSB member countries, have high levels of compliance with this new framework for non-viable banks, there have been instances of challenges for others with implementation where some stakeholders 3 may conclude that the framework has not yet been fully worked out, and the fact is that Governments may still have to step in and assist. Further, Implementation has not been tested in a crisis.

The FSB Key Attributes are valuable guidelines which have their genesis out of the catastrophic global crisis. With fintech expanding the reach of even the least complex of services, the guidelines on coordination and cooperation and cross border issues should be pursued by all, not only among the larger countries and economic blocs. Aspects of bail in implementation may present a challenge for many jurisdictions where the unintended consequences of applications of the regime might be worse than the problem being sought to be solved. Each country has to determine its best fit application of the Key Attributes to achieve the stated objectives. We have to continue to take the lessons of each of our respective applications to continue the build out of the most robust framework for our countries. These Forums and the collaborations allows us to look at the issues against the best practice standards and their real-world application to be able to assess costs and benefits and develop the policy advice that enhances our jurisdictions and our regional and global partners’ ability to ensure financial system stability.

I wish us success this week.

Thank you.