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, investors, depositors and others to keep a close watch on the financial institutions, but also provide an opportunity for other regulators also to be closely involved in supervising these institutions. for example, listed banks and financial institutions are not only under the supervisory arm of the central banks, but also the securities & exchange commissions. in multi - regulatory and multi - supervisory systems like what is still prevalent in our part of the world, it is necessary to ensure that the regulatory and supervisory burden be shared by all who are responsible for regulating and supervising banking and financial institutions. this will also provide an opportunity to mitigate concentration of regulatory risks. in multi - regulatory regimes, it is particularly relevant to ensure that appropriate cg principles are laid down, so that all regulators are aware of the principles behind these governance rules that are introduced in the interest of the wider financial system stability. in promoting sound cg, it is also necessary to develop an effective legal framework that specifies the rights and obligations of the institution, be it a bank or a finance company or other, its directors, shareholders and other stakeholders. the regulators, on their part, should initiate action to build capacity in cg at various levels, including the chairmen, the boards of directors and senior management of banks and financial institutions. the legal framework should also provide for disclosure requirements, facilitating the enforcement of the law. further, it is essential to encourage an effective financial news media, which deals with the importance of cg and educate the public. they should play a more responsible role in disseminating accurate information to the public and initiating a meaningful discussion on the subject. conclusion the developments in corporate governance that are taking place all over the world are increasingly complex. it is almost impossible for those who are not undertaking full - time studies on the subject to keep pace with these developments. yet, all of us who are interested in systems that stimulate business and keep the wheels of economies moving at a rapid space, would continue to have a strong interest in the subject. i am also hopeful that, the banking and financial community will continue to promote and foster these studies and practices since these provide the lubrication for the smooth functioning of our complicated financial systems in our ever - changing corporate regimes. we also know that a large portion of global business is in the banking sector. in addition, all business entities, maintain direct relationships with banks and financial institutions. in that context, the preeminent position that is applicable to the banks and enjoyed by them cannot be over

ajith nivard cabraal : importance of corporate governance for the banking and financial sector keynote address by mr ajith nivard cabraal, governor of the central bank of sri lanka, at the 9th south asia management forum, dhaka, 24 – 25 february 2007. * * * what is governance and why have governance? governance may be said to be all about effective, transparent and accountable administration of affairs of an institution by its management, while protecting the interests of its stakeholders including shareholders, creditors, regulators and the public. modern corporate governance practices have evolved over time and different codes of best practice on corporate governance have been developed by various organisations. e. g. the oecd code of corporate governance, the basel code of corporate governance for banks and financial institutions, etc. at the same time, several fundamental corporate governance principles have now evolved and have received worldwide acceptance, and guidelines under each such principle have been comprehensively developed by corporate governance activists, practitioners, researchers, and others. these principles generally relate to the responsibilities of the board, directors, chairmen, ceos, senior management, board appointed committees, auditors, shareholders and regulators. accountability, internal controls, related party transactions, conflicts of interest, information disclosures have also been extensively dealt with and targeted in the formulation of these principles. corporate governance principles had its origins in the 19th century although the term corporate governance itself came into vogue in the latter part of the 1980s. the need to focus on good practices of corporate governance mainly arose as a response to the separation of ownership and control following the formation of joint stock companies. the owners or shareholders of these joint stock companies, who were not involved in day to day operational issues, required assurances that those in control of the company, the directors and managers, were safeguarding their investments and accurately reporting the financial outcome of their business activities. thus, directors were the original targets of corporate governance, and practices and principles were designed to protect the interests of the shareholders from misdemeanours of directors. however, current thinking recognizes a company ’ s obligations to society more generally in the form of all stakeholders, and it has been this new thinking that has driven the study and practice of good corporate governance to the levels it has reached today. perhaps it is also such thinking that accounts for the hectic pace at which developments have taken place and are taking place in the practice as well. since the latter part of 2001, the very lively and often controversial debate on corporate governance became

the european payment system, target, is to be closed on 31 december. the reason for this decision is to enable all measures that need to be taken by the end of the day and the year to be carried out in good time before midnight. the closing of target makes it possible to close down all financial trade within the eu on new year ’ s eve. a further means of enhancing confidence and reducing vulnerability is to establish contingency plans, i. e. measures that will be resorted to should problems still arise in spite of all preparations. such plans are not something that should be unique to the change of millennium ; they should always exist in organisations in the financial sector. many of the measures that have been taken in preparation for the transition to the year 2000 have focused on questions related to confidence. a high degree of confidence in financial markets is important if the markets are to function efficiently. for this reason, anxiety that the functioning of the market may be impaired or a lack of confidence in the payment systems, are enough in themselves to constitute a problem. lately, comments have frequently centred around possible liquidity problems. however, the exact significance invested in the word liquidity is often unclear, as is what, fundamentally, could lead to problems. the word liquidity means “ the capacity to quickly obtain funds for the settlement of debts ”. 1 in practice, the word liquidity is used to express a variety of phenomena. in my opinion, therefore, it may be appropriate to take a closer look at the concept of liquidity and to clarify the role played by the riksbank in managing liquidity. the comment that liquidity in the market is poor often describes a situation in which major price changes occur even when turnover is low. to use market jargon, the market is said to be thin. one explanation for this can be a low level of customer activity. such situations frequently tend to arise at the end of the year, when companies and financial institutions have adjusted their balances in preparation for closing their books and therefore have little interest in modifying their portfolios. judging by comments on the market, there are expectations that the period of low activity in the market at the end of this year could turn out longer than usual. in other words, uncertainty about the effects the change of millennium might have on interest rates and financing possibilities could lead agents on the market to make adjustments to their portfolios earlier than usual. on this view, one possible explanation for why the interest rates on loans and

during the run - up to emu, countries notorious for their inflationary bias have experienced marked disinflation. no longer do people in those countries tolerate price rises. when some retailers tried to raise prices of some products after euro notes and coins came into circulation ( in january 2002 ), people were in a rage. this is a good indication of how deep the newly - won stability consensus in europe already runs. never before has there been so much price stability in europe as during the last decade. however, price stability is not unique to europe. disinflation occurred on a global scale, as price stability has been recognised as the superior concept of monetary policy. no major economy or economic bloc is willing to go back to inflationary habits. in this respect, the prospects for the world economy are highly favourable. the european stability consensus aims at underpinning price stability with an equally stability - oriented fiscal policy. eu governments therefore agreed on the european stability and growth pact. the idea of the pact is to not only to promote stability by preventing the emergence of conflicts between monetary policy and fiscal policies. sound public finances as envisioned by the pact contribute to sustainable growth, for they foster confidence. the pact provides a credible framework designed to automatically stabilise the economy over the business cycle. the budget should be balanced over the course of the cycle, allowing for deficits if necessary, but also calling for surpluses if growth is high. the overall debt level of the public sector must be sustainable. we regard the stability and growth pact framework as a major improvement compared with discretionary stimulus packages that in the past have all - too - often proved to be ill - timed and debt - propelling. the much - chided euro - area social security systems are the main tools of automatic stabilisation. calls to revise the pact to counter its alleged procyclicality lead astray. counter to conventional wisdom, the pact is flexible. it even allows for large macroeconomic stimulus. the only problem with the pact is that some governments wish to apply it asymmetrically : they are willing to run deficits in a weak growth environment, but wish to dodge consolidation in times of budgetary abundance. this deficit bias is the very reason for the 3 % - of - gdp deficit limit. the ongoing debate is the best evidence of how important the 3 % ceiling deficit is. i am well aware that in the field of fiscal policy, the us and the euro area have recently started

would greatly improve the image of the region in front of the international community and it would make our final aspiration for eu membership easier to achieve. on the other hand, i think that we should benefit from the work in group for yet another reason. regardless of the different levels of the countries ’ developments and despite many other geopolitical factors, i hold the opinion that in the fields of economy, the banking sector, structural reforms, finance and markets, we show the same symptoms and to a certain degree, priorities converge. this is why i think that foreign assistance will be more effective. this is why i think that the several projects that may be prepared by the foreign donors would be more effective. i think that the region will show more or less the same progress without creating wide contrasts which – according to a long - term perspective – could emerge as serious problems. i hope that the agreement we signed today will only be the first step in the long road towards the comprehensive cooperation between our two institutions. personally, i consider the fields of payments, research, human resources and statistics as other areas of reciprocal interest. cooperation should be concrete and should serve to the adoption of better standards, as well as to the exchange of opinions with regard to various matters related to the regulatory framework. as regards the agreement of understanding in the field of banking supervision, i would like to emphasize the fact that a standard model which is in compliance with the european directives and the basel committee has been adopted. this is a concrete and appropriate common commitment with regard to cooperation in the field of supervision. it is worth mentioning that both parties, among other things, will extend their cooperation in the field of organizing common events as well as various training programmes of common interest. 1 / 2 personally, i think that the bank of albania has already developed its supervisory and analyzing capabilities to a satisfactory level, and as a consequence, i think that our assistance in this field will be useful. at the same time, i think that in the banking and payments authority of kosova, as a more recent institution, these capabilities are being developed at a satisfactory pace and i believe that its staff holds many practices and findings that they could offer to their colleagues at the bank of albania. at the conclusion of this short speech please let me express once more the great pleasure that this visit gives to me. i avail myself of this opportunity to assure my kosovar friends that they will always find in me and in the bank of albania an open window not

ardian fullani : cooperation in the field of banking supervision in albania speech by mr ardian fullani, governor of the bank of albania, on the occasion of the signing of the agreement on the field of banking supervision between the bank of albania and the banking and payments authority of kosova, prishtina, 11 july 2005. * * * i would like to take the opportunity from this occasion of the signing of the agreement on the banking supervision to say that i really feel excited for being here in prishtina today. it is my first visit since i took over the position as governor of the bank of albania and i would like to assure you that it will not be the last one. there are many reasons that pushed me to make this commitment today in front of you, and among them, i would like to focus on the necessity that our two institutions, the banking and payments authority of kosova and the bank of albania should raise the level of cooperation and reciprocal assistance. during this last period, i have personally attended meetings not only at the central banks of our region, but i have also met with high representatives of the interested international institutions. i have found everywhere an atmosphere of understanding and support, particularly with regard to the initiative for a greater cooperation between the region ’ s central banks. i would like to focus a bit more on this point, as i am of the opinion that it represents one of the relevant directions to which we should pay more attention in the future. the agreement that we signed today is a supporting evidence in this direction and based on the conversations i had with mr. svetchine, the unmic officials and with mr. kosumi, i can say that they have shown their goodwill and commitment as regards cooperation in this field. more specifically, we have established contacts with all the central banks of the region, up to the high levels of representation and i have realized that in every case they have expressed their readiness to further intensify the regional cooperation in this context. on the other hand, in the contacts with relevant international organizations such as the european commission, world bank, as well as the european central bank and many of the members of the european system of central banks, i have widely discussed this issue and i have found their total support in relation to the specific problems that characterize the economic and financial development of our region. at present, there exist many opportunities that we should use in a wise manner, since a collective action from our part

health. this, in turn, would worsen the quality of banksa€™ balance sheets. policy support remains essential to prevent balance sheet strains and tightening financing conditions from reinforcing each other. conclusion summing up, the euro area economy is clearly rebounding. however, the speed of the recovery continues to depend on the course of the pandemic and progress with vaccinations. the current rise in inflation is expected to be largely temporary and underlying price pressures will build up only gradually. the slight improvement in the medium - term inflation outlook and the current level of financing conditions allow favourable financing conditions to be maintained with a moderately lower pace of net asset purchases under the pepp. our policy measures, including our revised forward guidance on the key ecb interest rates, are key to helping the economy shift to a sustained recovery and, ultimately, to bringing inflation to our two per cent target. we are now ready to take your questions. 3 / 3 bis central bankers'speeches

christine lagarde : ecb press conference - introductory statement introductory statement by ms christine lagarde, president of the european central bank, and mr luis de guindos, vice - president of the european central bank, frankfurt am main, 9 september 2021. * * * good afternoon, the vice - president and i welcome you to our press conference. the rebound phase in the recovery of the euro area economy is increasingly advanced. output is expected to exceed its pre - pandemic level by the end of the year. with more than 70 per cent of european adults fully vaccinated, the economy has largely reopened, allowing consumers to spend more and companies to increase production. while rising immunity to the coronavirus means that the impact of the pandemic is now less severe, the global spread of the delta variant could yet delay the full reopening of the economy. the current increase in inflation is expected to be largely temporary and underlying price pressures are building up only slowly. the inflation outlook in our new staff projections has been revised slightly upwards, but in the medium term inflation is foreseen to remain well below our two per cent target. financing conditions for firms, households and the public sector have remained favourable since our previous quarterly assessment in june. favourable financing conditions are essential for the economy to continue its recovery and to offset the negative impact of the pandemic on inflation. based on a joint assessment of financing conditions and the inflation outlook, the governing council judges that favourable financing conditions can be maintained with a moderately lower pace of net asset purchases under the pandemic emergency purchase programme ( pepp ) than in the previous two quarters. we also confirmed our other measures, namely the level of the key ecb interest rates, our forward guidance on their likely future evolution, our purchases under the asset purchase programme ( app ), our reinvestment policies and our longer - term refinancing operations, as detailed in the press release published at 13 : 45 today. we stand ready to adjust all of our instruments, as appropriate, to ensure that inflation stabilises at our two per cent target over the medium term. i will now outline in more detail how we see the economy and inflation developing, and then talk about our assessment of financial and monetary conditions. economic activity the economy rebounded by 2. 2 per cent in the second quarter of the year, which was more than expected. it is on track for strong growth in the third quarter. the recovery builds on the

##downs. fiscal policy, like monetary policy, acts with significant lags. many of the first - best options for long - term investment have the longest lead times. it is therefore best to set plans in place sooner rather than later, lest a second - best response be rushed out at a later date, with lesser impacts that arrive too late. applying our risk management approach : there is little downside to investing now, and many downsides if the spending comes too late. when we talk about unconventional monetary policy and fighting slowdowns, it is of course important to take a step back and look through the gloom : we are not in a recession, and we expect the economy to recover over 2020. it is possible that uncertainty could clear up in the coming year if there is closure on the topics of brexit and trade tensions. we are readying ourselves if we need to act further. conclusion monetary policy is one tool. it needs to be seen in the context of all the reserve bank ’ s tools as well as the wider economic levers which have seen less in recent times. in these uncertain times we must continue to communicate and offer forward guidance as to future path of policy. yes, there is uncertainty. yes, it is affecting us. no, monetary policy cannot directly resolve this issue. but we can offset its effects and empower others to fuel economic activity that will benefit us in both the short and long - term. there has never been a greater time to make use of accommodative monetary policy for investing in productive assets. meitaki, thank you. references aldridge, t., & wood, a. ( 2014 ). monetary policy decision - making and accountability structures : some cross - country comparisons. reserve bank bulletin, 77 ( 1 ). au, j. and karacaoglu, g. ( 2018 ) beyond gdp measuring new zealand ’ s wellbeing progress. deloitte new zealand state of the state article 2. bis ( 2019 ) annual economic report. brainard, l. ( 2018 ). what do we mean by neutral and what role does it play in monetary policy? a speech at the detroit economic club, detroit, michigan ( no. 1011 ). callaghan, m., cassion, e., vehbi, t., & wong, b. ( 2019 ). opening the toolbox : how does the reserve bank analyse the world? reserve bank bulletin, 82 (

4 ). feldstein, m. ( 2017 ). underestimating the real growth of gdp, personal income, and productivity. journal of economic perspectives, 31 ( 2 ), 145 - 64. lisack, n., sajedi, r., & thwaites, g. ( 2017 ). demographic trends and the real interest rate. bank of england working paper no. 701. nolan, p., pomeroy, r., & zheng, g. ( 2019 ). productivity by the numbers : 2019. new zealand productivity commission. poloz, s. ( 2019 ) toward 2021 : the power — and limitations — of policy. remarks at the chamber of commerce of metropolitan montreal, quebec. powell, j. ( 2019 ) challenges for monetary policy. remarks at symposium sponsored by the federal reserve bank of kansas city jackson hole, wyoming. rice, a., vehbi, t., & wong, b. ( 2018 ). measuring uncertainty and its impact on the new zealand economy. reserve bank of new zealand analytical note series, an2018 / 01. rogoff, k. ( 2019 ). is this the beginning of the end of central bank independence? g30 occasional paper 95. vlieghe, g. ( 2019 ). monetary policy : adapting to a changed world. speech given at the 2019 mmf monetary and financial policy conference. bloomberg, london.

high level, and we all have a stake in making sure that they do. " i remain wholly dedicated to that goal. 2 i wish you a productive and educational conference. thank you. 1 see interagency working group on treasury market surveillance, joint staff report : the u. s. treasury market on october 15, 2014 ( pdf ) ( washington : interagency working group, july 2015 ). 1 / 2 bis - central bankers'speeches 2 see jerome h. powell, " opening remarks " ( speech at the 2015 roundtable on treasury markets and debt management : evolution of treasury market and its implications, new york, ny, november 20, 2015 ). i. note : on september 26, 2024, the text of the speech was updated to reflect the delivered remarks in the video version of this speech. 2 / 2 bis - central bankers'speeches

jerome h powell : opening remarks - 2024 us treasury market conference opening remarks ( via prerecorded video ) by mr jerome h powell, chair of the board of governors of the federal reserve system, at the 10th annual us treasury market conference, federal reserve bank of new york, new york city, 26 september 2024. * * * hello, everyone, and welcome to the 10th annual u. s. treasury market conference. " tenth annual " is a phrase that generates a bit of surprise, and much pride. it is surprising because it does not seem like the first of these gatherings, which i was honored to play a role in organizing, was all that long ago. but we can also take pride because the conference has proven useful and important for a full decade, as i expect it will do for many more years to come. much has changed in the economy since we first gathered in 2015 - but the importance of the u. s. treasury market has not. as you all know, this market is the deepest and most liquid in the world. in addition to meeting the financing needs of the federal government, it plays a critical role in the implementation of monetary policy. it is no exaggeration to say that the treasury market is part of the bedrock of our economy and indeed of the world economy. the october'14 flash crash and the subsequent publication of the interagency working group report on that event are what brought us together for the first annual conference. 1 october 2014 was a wakeup call because there had never been such a large swing in treasury prices in such a short period of time. the interagency working group report shed light on how much the structure of the treasury market had changed and how large a role high - speed, electronic trading firms were playing in it. it also showed the value of cooperation and communication between the five agencies in the working group, something that proved again to be vital during the disruptions caused by the covid - 19 pandemic. i am pleased to see that all working group members are represented here today. you will be hearing directly from many senior leaders, including your host, president williams ; vice chair barr ; and secretary yellen, who, of course, was fed chair at the time of the first conference. it is essential that our treasury markets are able to efficiently transform treasury securities into cash, even at times of elevated stress. as i noted at this event in 2015, " these markets need to keep functioning at a

their characteristics, shari ’ ah compliant financial products can enhance the stability of the financial system. shortcomings in standardization and liquidity management must be tackled, however. cooperation between investors, issuers and regulatory and supervisory authorities is a prerequisite for a successful integration beneficial to all stake holders. luxembourg with its tradition as a specialized financial center will continue its endeavors to establish an international hub for islamic finance.

hit the real economy. overall, islamic banks performed better within the last three years than their conventional counterparts. thanks to higher solvency and lower leverage islamic banks succeeded in matching relatively higher demand for credit at a time when europe and the us dealt with the threat of a credit crunch. moreover, according to various credit rating agencies, the change in islamic banks ’ risk assessment has been better than that of conventional banks ( with the exception of banks in the united arab emirates ( uae ) ). ensuring a level playing field as long as financial stability and the functioning of the transmission mechanism of monetary policy are not at risk, central banks should not interfere with the structure of finance. ensuring a level playing field can be seen as a prerequisite for functioning financial markets. if the demand for islamic compliant financial products is rising, obstacles for its further development should be abolished without contradicting the principles of appropriate supervision and regulation nor the prevalent operational framework of central banks. therefore, the infrastructure and supervisory environment should be provided to allow efficient clearing of a sufficient number of investment - grade islamic finance papers across the whole maturity spectrum. while banking authorities are committed to adapt and to be accommodating for islamic finance within the european regulatory framework, it is crucial to require the same licensing and supervision standards from islamic financial institutions as expected from conventional banks. 7 real challenges however remain on the legal side for example asset transferability. but these complications are to a large extent shared with the conventional banking system. keeping that balance will be beneficial to both islamic investors and the european financial system. hasan, maher ; dridi, jemma : the effects of the global crisis on islamic and conventional banks : a compartive study, imf working paper wp / 10 / 201, washington, 2010. mersch, yves : speech at the 5th economic forum belgium - luxembourg - arab counties, in brussels, 17th november 2009. luxembourg ’ s pro active approach in luxembourg, private and public decision makers of the financial industry are motivated to establish a regional hub for islamic finance, making use of luxembourg ’ s expertise in cross border finance. major steps have been taken already. the central bank of luxembourg is a member of the islamic financial services board ( ifsb ), a standard setter for financial stability. addressing shortcomings in the sukuk market such as lack of liquidity and international recognition, small size of issuances, insufficient number of high quality issuers and focus on domestic markets, the ifsb coordinated the

’ s interest in other languages. the name of this booklet is : ( in espanol, catala, euskara, galego, valencia ) • ana y alex contra los falsificadores de billetes • l ’ anna i l ’ alex contra els falsificadors de bitllets • ana eta alex, billete - faltsutzaileen aurka • ana e alex contra os falsificadores de billetes • ana i aleix contra els falsificadors de bitllets after these introductory remarks it is now a pleasure for me to declare this euro exhibition open. you are kindly invited to come closer to view the exhibition and the children ’ s booklet.

42. see, for example, gros, d. and shamsfakhr, f. ( 2022 ), “ the real fiscal cost of central bank bond buying ”, ceps explainer, no 2022 - 04, november. 43. see, for example, swedish national audit office ( 2023 ), the riksbank ’ s asset purchases – a costly experience, december ; and house of lords economic affairs committee ( 2021 ), “ quantitative easing : a dangerous addiction? ”, july ; and treasury committee ( 2023 ), call for evidence – quantitative tightening. 44. corradin, s. and maddaloni, a. ( 2020 ), “ the importance of being special : repo markets during the crisis ”, journal of financial economics, vol. 137 ( 2 ), pp. 392 - 429 ; and weigerding, m. ( 2023 ), “ long - term liquidity effects of large - scale asset purchase programs : evidence from the euro covered bond market ”, international review of economics & finance, vol. 87, pp. 244 - 264. for japan, see han, f. and seneviratne, d. ( 2018 ), “ scarcity effects of quantitative easing on market liquidity : evidence from the japanese government bond market ”, imf working papers, no 18 / 96, international monetary fund, may. 45. arrata, w. et al. ( 2020 ), “ the scarcity effect of qe on repo rates : evidence from the euro area ”, journal of financial economics, vol. 137, no 3, pp. 837 - 856. 46. nguyen, b., tomio, d. and vari, m. ( 2023 ), “ safe asset scarcity and monetary policy transmission ”, working paper series, no 934, banque de france ; and schnabel, i. ( 2024 ), “ the eurosystem ’ s operational framework ”, speech at the money market contact group meeting, frankfurt am main, 14 march. 47. international monetary fund ( 2018 ), “ house price synchronization : what role for financial factors? ”, global financial stability report, april, pp. 90 - 133. 48. schnabel, i. ( 2021 ), “ monetary policy and inequality ”, speech at a virtual conference on “ diversity and inclusion in economics, finance, and central

they unfold. the appropriate pace of rate increases will depend on how the outlook evolves, with a particular focus on developments in oil markets, the canadian housing market and global trade policy. with that, i will be happy to take your questions. 2 / 2 bis central bankers'speeches

donald l kohn : dedication remarks speech by mr donald l kohn, vice chairman of the board of governors of the us federal reserve system, at the dedication of the new seattle branch building of the federal reserve bank of san francisco, renton, washington, 7 april 2008. * * * good afternoon. it is my honor and pleasure to be here today to help dedicate the new seattle branch building, and to speak about how this terrific new facility will assist the federal reserve system's efforts to help guide the national economy and serve the payment needs of the northwest. i would like to express my personal appreciation to the city of renton for its support and assistance in locating the seattle branch at its new home along naches avenue. as chairman of the committee on federal reserve bank affairs at the board of governors, i have followed this building project closely, and value the city's cooperation in helping ensure its future success. i especially appreciate the city's close cooperation with us in upgrading the utilities and streets serving the site and, essentially, making it a welcome new home for branch employees. the seattle branch, created in 1917, was housed in leased space until a downtown site was built in 1950. although that building served the seattle area's needs well for more than fifty years, service demands on the branch have evolved and outstripped the capabilities of the old building and site. the vault and cash processing areas were no longer adequate for efficient operations, and cash delivery facilities could not accommodate the type and number of delivery vehicles, which had resulted in armored trucks queued along spring street. furthermore, the building's general layout and construction did not meet the post - 9 / 11 security requirements necessary for protecting federal reserve system employees and operations. we considered several sites in the seattle metropolitan area for the new building, initially searching for a suitable site within the city limits. but our site and transportation requirements prompted us to consider options within the broader metropolitan area, and we found that this location's proximity to major roads and highways will improve vehicular access for employees, visitors, and delivery personnel. as you may have noticed, the new site is large – almost 10 acres – and its security is evident. clearly, the safety of our employees and operations is a high priority that has become a greater focus in the post - 9 / 11 era, but the building is more than just secure : its design supports our mission, which is to promote a stable and efficient financial system and to conduct

. by tying ourselves to a reaction pattern, monetary policy credibility was restored and the way was paved for more stable economic developments. in the wake of kydland ’ s and prescott ’ s recommendations, both fiscal policy and monetary policy have become more rule - based in many countries. policy rules are useful in that they give weight to long - term objectives when faced with day - to - day economic policy challenges. since the early 1990s, many countries have implemented institutional reforms, such as central bank independence in the conduct of monetary policy to reach government - defined objectives. at the same time, the objectives of monetary policy have become clearer, with the primary objective normally being low and stable inflation. thus, the authorities in many countries have thereby committed to give priority to the long - term goals in monetary policy. the conduct of monetary policy under a flexible inflation targeting regime, given the defined objectives, also gives rise to challenges concerning commitment to a pattern of behaviour. however, the benefit of a commitment policy in relation to a discretionary policy is not as straightforward as for example that of a fixed exchange rate regime. the benefit of commitment to a pattern of behaviour lies in the fact that today ’ s prices, wages and exchange rates depend on expectations concerning future activity levels and interest rates. if, for example, a shock brings down inflation to a level that is considerably lower than the target in the short run, it is not only a low interest rate today, but even more so expectations of low interest rates in the future that will push up inflation. by committing to a response pattern that implies an expansionary monetary policy, not only in the immediate term but also somewhat further ahead, inflation may pick up faster again. but if economic agents ’ expect the central bank to discard this promise, inflation will not pick up to the same extent as would otherwise be the case. over time such a commitment policy will improve stability in both inflation and the activity level compared to a policy based on discretion. let me attempt to illustrate the gains of committing to a response pattern rather than pursuing a purely discretionary policy. we have developed tools that allows us to find interest rate paths that minimise the loss function, given a model of the economy ’ s functioning and given economic shocks. within the framework of a small macroeconomic model, we have estimated the magnitude of the shocks to which the norwegian economy has been exposed over the past 10 - 15 years. under the two assumptions about monetary policy, discretion and commitment, we have estimated how

luis maximo dos santos : the euro 20 years on - the debut, the present and the aspirations for the future closing address by mr luis maximo dos santos, vice - governor of the bank of portugal, at the conference “ the euro 20 years on - the debut, the present and the aspirations for the future ”, lisbon, 15 november 2019. * * * 1. twenty years ago we launched an unprecedented, historic experiment. eleven free and sovereign nations, including portugal, democratically decided – after checking compliance with the criteria set out in the maastricht treaty – to share monetary sovereignty, and exercise it jointly. it is true that history has witnessed several monetary integration processes ( and also some disintegration processes, by the way ). but none have been quite like the creation of the euro, given its nature and complexity. indeed, never before has such a vast and heterogeneous group of nations, in terms of both economic and social development and their history and institutions, decided willingly and in peacetime to live together under a monetary union. the step taken 20 years ago, pursuant to the provisions set out in the maastricht treaty, stemmed from the political ability to seize on the historical opportunity which then arose and was fully consistent with the need to complete the internal market and affirm europe ’ s position in the face of globalisation. but this was not at all an impulse driven by circumstance. on the contrary, it fulfilled a longsought ( but not always explicit ) goal of the european integration process and was the result of a long journey, full of breakthroughs and setbacks, which continued a gradual monetary integration process. the clearest example of this is the european monetary system, created in 1979. regardless of how we assess its rationale and results, it is appropriate to state that the creation of the euro was one of the boldest acts of economic and political proactivity ever performed and, for that very reason, has led us, to some extent, into uncharted territory. this gives us a precise idea of how fundamental it is to take the necessary measures to ensure that the european monetary unification is successful in the long term. 2. despite structural shortcomings in the economic and monetary union ( emu ) project, which were far more serious in its initial version ( and which have been discussed here today in part ), it is important to emphasise 20 years on that : i. the number of euro area member countries

touch on other possible reasons for this decline in upward mobility and relative income, such as changes in the prospects for career advancement that vary by occupation and location. the second observation is the widening gap in economic status and prospects between those with a college degree and those without one. in the 1960s, well over 90 percent of working - age men held a job, and there was very little difference in employment between those with or without a college degree. while the share of college - educated working - age men with a job has fallen from more than 95 percent in 1967 to around 90 percent in 2017, it has plunged for others. ninety - five percent of male high school graduates were working in 1967, but only about 80 percent of them were working as of 2017. among working - age men without a high school diploma, about 90 percent had a job in 1967 versus a bit more than 70 percent in 2017. for women of working age, the trends are less clear, but those without a college degree are also less likely to work today. research presented this morning will discuss some possible 1 / 2 bis central bankers'speeches explanations for the divergence in employment, income, and other economic prospects between college grads and others. the third observation is that the prospect of moving up the economic ladder depends on factors beyond effort and talent, including your family, the neighborhood you grow up in, and the quality of the primary and secondary schools you attend. your chances for attending college are much better if you are raised in a higher - income household, and that advantage has increased substantially since the 1980s. another factor is geography. some research indicates that economic prospects are better for those who grow up in neighborhoods with less income inequality, less concentrated poverty, and better performing schools. finally, across so many dimensions, we continue to see disparities in economic outcomes by race and ethnicity. these issues are crucial. sound public policies can support families and businesses and help more americans reach and remain in the middle class. i look forward to hearing about your discussions over the next two days, and thank you, again, for your contributions. 12 1 see pew research center ( 2016 ), “ what americans say it takes to be middle class, ” fact tank ( washington : prc, may 6 ). 2 see congressional budget office ( 2018 ), the distribution of national income, 2015 ( pdf ) ( washington : cbo, november ). 2 / 2 bis central bankers'speeches

amando m tetangco, jr : rcbc – banking on emerging corporates speech by mr amando m tetangco, jr, governor of the central bank of the philippines ( bangko sentral ng pilipinas ), at rcbc ’ s ( rizal commercial banking corporation ) relaunching of its program for small and medium enterprises, makati city, 26 march 2008. * * * ambassador yuchengco, chairman dee, president tan, other officers and staff of rcbc, special guests, good evening. in many countries, including the philippines, small and medium enterprises constitute the backbone of the economy. as such, initiatives that provide meaningful support to smes represent welcome news indeed. it is in this context that i view rcbc ’ s re - launch of its sme lending program. through the years, consolidated lending of the banking sector to smes has shown considerable growth. in 1991, the year republic act no. 6977 or the magna carta for small enterprises took effect, credit to smes amounted to p17 billion. by december 2007, or 16 years later, total loans extended to smes have reached p352 billion. this is roughly 21 times more than the 1991 total. we at the bangko sentral ng pilipinas acknowledge the banking sector ’ s commitment to support smes. as a whole, the banking sector has consistently exceeded the mandatory credit allocation for smes under the magna carta for small enterprises. although this law lapsed in august last year, congress has already ratified the bill extending and enhancing the sme law. we expect this to be signed into law in the very near future. in the meantime, the bangko sentral ng pilipinas encourages banks to continue supporting smes. it is in this light, that we commend rcbc for taking a leadership role in promoting and allocating resources for its sme lending program. as one of the major banks in our country, rcbc is bound to influence others to take a similar stance. to me, support for smes translates directly to a vote of confidence for our people and our country. recognized as the biggest employers in our country, smes account for about 80 % of employment generation. if, therefore, we are able to keep the sme sector on a consistent growth track, we would be able to accomplish broad - based and sustained growth for our country. equally important, we would have a strong domestic economy that

consumers. people will base their decisions on factors like price, quality and the cost of production. if it ’ s a competitive market, we ’ d expect it to have certain characteristics, such as that : other things equal, a lower price means more demand ; producers compete to offer the product at the lowest price they can ; and the price mechanism promotes efficiency by guiding resources to their best use. in practice, no market will meet those conditions perfectly. but the card - payments market has some particular qualities that make it very different from the stylised description i ’ ve just given. first, the card payments market is subject to network externalities, which is another way of saying that the cost - benefit decisions made by the various players are highly interdependent. the value of the service i get from being part of a card network depends, in part, on the size of the network. cardholders value having a particular card in their wallet because they know the card is widely accepted. and merchants value the capacity to accept a card because it ’ s widely held. this aspect of the market adds a level of complexity to the pricing strategy, because the suppliers of card services will want to take those externalities into account. they have an incentive to adopt pricing strategies that promote the size of their networks. the second difference is that card payments services are a joint product. the purchaser of the service, in any given transaction, is not the only one who benefits from it. when a card is used to make a payment, it delivers a service jointly to both the payer and the receiver of the funds. thirdly, the card payments market, particularly in the credit cards space, has evolved in such a way as to have a very unusual characteristic. that is, that the decision - maker in a transaction – the person who decides which payment method to use – is generally not the person who is on the receiving end of the price signal. to be specific, it is typically the purchaser who decides whether to use a card ( and which card to use ), but it ’ s the merchant who, in the first instance, pays the fee associated with that decision. so, in a world where cards are widely held and widely accepted, the effective demand for the service is determined mainly by the cardholders, while the price is charged to the merchants. this is where, in the four - party card schemes, interchange fees play a key role, because they are typically passed on to

medium - term goal for bis central bankers ’ speeches inflation, provided the community can understand their temporary nature and expectations of ongoing inflation remain well - anchored. accordingly, the view of the board at the recent meeting was that while the impact of the floods on the short - term path of output and prices would be quite substantial, monetary policy should not respond to those effects. likewise, while the recovery efforts may add a little to aggregate demand over the latter part of 2011 and 2012, those effects should be manageable. while we could not assess the impact of cyclone yasi at the board meeting, our assessment of the medium - term outlook is not very different now. the outcomes for inflation in the latter part of 2010 were quite moderate and a little lower than we had thought they would be at the time of the last hearing. to what extent this represents a genuinely lower trend, as opposed to noise, is, as always, difficult to say. there would appear to be some association between consumer caution, reports of widespread discounting in the retail sector and the very high exchange rate. if that connection is in operation then the question arises as to how long such cautious behaviour might continue – and this is one of the uncertainties to which we point in the section on “ risks ” in the outlook chapter of the statement. there are of course other uncertainties as well. but stepping back, underlying inflation has fallen by a substantial amount from the peak in 2008. it is worth recording that a combination, on the latest figures, of a 5 per cent unemployment rate and an inflation rate clearly “ in the 2 ’ s ” is a pretty favourable one by the standards of recent decades. turning finally to monetary policy itself, as a result of the adjustment to the cash rate made in november, and the changes made by financial institutions to lending rates, interest rates being paid by borrowers are a bit above average compared with the past 15 years. household credit growth is quite modest and business credit is still declining, as firms continue to consolidate balance sheets and, in the case of larger companies, to access capital markets directly. reports suggest that there is some easing of lending conditions in some areas but my sense is that, generally, lenders remain quite cautious. the exchange rate is at peak levels for the floating rate era. this is not especially surprising given the level of the terms of trade, but nonetheless it is exerting dampening pressure on the traded sector outside of the resources sector. so, overall, financial conditions

. thank you for your attention.

guy quaden : installation of the financial stability committee introductory talk by mr guy quaden, governor of the national bank of belgium and chairman of the financial stability committee, at the installation of the financial stability committee, brussels, 30 july 2003. * * * the installation of the financial stability committee, the committee which the ministers reynders and moerman are doing us the honour of inaugurating today, is one of the very last stages in the implementation of the law of 2 august 2002, designed by the ministers reynders and picque and adopted by parliament by a very large majority, a law which has modernised our financial markets and reformed their supervision. i would like to take advantage of the opportunity to welcome this reform, and especially its institutional aspects. thus, i am delighted that the supervision of the rules on market operation has been transferred to the public authorities - more precisely the bfc ( banking and finance commission ) - in cases where those rules are of public interest. it was doubtless also necessary to review the governance - to use a fashionable word - of the institutions responsible for supervising the financial markets and intermediaries, and i include insurance companies here. by equipping the supervisory institutions with proper management boards whose members carry full responsibility for managing the institution, we are undoubtedly providing a better guarantee that decisions are genuinely taken on a collegiate basis. in my view, it was also wise to decide that the microprudential supervisory authorities, the bfc and the iso ( insurance supervision office ), which tomorrow become the bfic ( banking, finance and insurance commission ), should remain separate from the central bank while strengthening their links with the bank. finally, in a country where “ bancassurance ” groups are particularly well developed, the reform was complemented, i believe logically, by the planned merger of the bfc and the iso. where financial supervision is concerned, we must admit that there is no obvious model to follow. thus, the arrangements still vary from one country to another, depending on the national institutional history. broadly speaking, however, we can identify two main models for organising these powers in the european union : a model like that used in britain and also in sweden, in which a single agency, almost entirely separate from the central bank, is responsible for all micro - prudential supervision, and a model - which is the most common type in the euro area - in which the central bank itself takes charge of part of the prudential

##aligned from fundamentals, the intervention may be successful in realigning the currency. if not, sterilized intervention will most likely be ineffective, and for this reason is important to have a strong presumption that the currency has moved away from fundamentals before intervening. 3 in addition, foreign exchange intervention allows authorities to increase the international liquidity position of the economy so as to insure against a future curtailment of capital inflows. naturally, a booming economy, with a widening current account deficit, persistent appreciation and low inflation may need some stabilization if the expansion is deemed to be unsustainable. fiscal policy could help, but unfortunately it is not always available, especially in countries with a weak fiscal history. another tool, with weak evidence supporting its for further discussion on the use of monetary policy to affect asset prices, in particular in the context of inflation targeting in open economies, see de gregorio ( 2010b ). in economies following inflation targets is important that the intervention be coherent with the inflation outlook to avoid undermining credibility. intervention can also be part of unconventional policies to reach the inflation target when interest rates are close to the zero lower bound. effectiveness, is capital controls. 4 regardless of whether they are effective or not, they may hide policy distortions. for example, policymakers thinking that capital controls are effective at insulating the economy from capital inflows, may tighten monetary policy to slowdown the expansion, but instead induce further inflows that look for loopholes to avoid the controls. for this reason i think that a more promising avenue is to look at the impact of capital inflows on financial stability. indeed, many of the booms in asset prices and activity that come with capital inflows are caused and amplified in the financial system. capital inflows and financial stability from the macro point of view, i have emphasized currency risks associated to capital inflows. a flexible exchange rate should help mitigate this risk. in addition, the development of the foreign exchange derivatives market should allow private agents to hedge against currency risk. in addition, capital inflows may be behind the development of bubbles in domestic asset prices, and there are also macro tools to deal with them. however, there are other risks that must be considered, which have implications on macro prudential regulation. note that these risks may be relevant even when net capital flows are limited. therefore, from the standpoint of financial stability, gross flows become

output gap would allow boosting growth in a stable manner from just less than 2 % in recent years to a 2. 5 % to 3 % range. as i mentioned before, this is grounded on a better external scenario, the fading of some sectoral factors that have slowed down the pace of growth, a more expansionary monetary policy, and the lack of macroeconomic growth constraints. this requires more dynamic exports, domestic demand and investment. 22. a more significant increase in investment that brings it closer to its historical rates, coupled by increased factor mobility, would boost growth to a sustainable rate of around 3. 5 %. this would require revitalizing mining investment, better investor expectations in the rest of the economy, favorable financial conditions, and the elimination of bottlenecks that hinder the reallocation of resources toward more competitive areas. a smooth operation of both the labor market and the capital market is essential for this. 23. regarding productivity growth in the other sectors, the possibility of further improvements relies mainly on : ( 1 ) increasing human capital accumulation through increased labor participation, raising working skills above the already projected levels or the migration of workers with the competences required by the chilean system ; and making productivity improvements via enhancing companies ’ efficiency, lowering production and trading costs, and changing output composition toward more competitive and productive sectors, while advancing in terms of innovation and technological development. 24. as chile ’ s concern for growth has intensified, many ideas about public policies have emerged that could help enhance productivity, with proposals coming from the government, private agents and the national productivity commission. in particular, policies have been developed that have permitted to diversify the energy matrix, increase supply reliability and reduce costs. there have been other factors, however, that pose a risk to productivity, including initiatives that may overburden corporate costs, generate new trading costs or reduce savings. 25. finally, any discussion about productivity must necessarily cover technological development. this is a key driver of economies ’ productivity and competitiveness around the world. it is obvious in my opinion that the new technologies, knowledge and innovation capacity are input into the productive system through new ventures, investments and restructurings.

calibrated and timely manner to sustained high level of inflation and threats to financial stability. overall, while pursuing its policy objectives and mandates, the bank is committed to ensuring that macroeconomic policies are aligned and, accordingly, the policy choices and responses to promote price and financial stability are undertaken in the broader context and interest of fostering inclusive economic development and a building a broad - based, resilient economy. honourable minister, distinguished guests, against the backdrop of this outline of the monetary framework and objectives, i will now address, in turn, first, the global trends that have influenced inflation in botswana ; second, i will report on the conduct of monetary policy in 2021, internationally and here at home ; and third, the medium - term inflation outlook and the likely policy stance in 2022. i will, thereafter, outline the reforms to monetary operations i alluded to earlier. external economic developments in 2021 the global economic performance and sentiment strengthened in 2021, amid improving demand resulting from the easing of the pandemic containment measures and consequent opening of economies. the reopening of economies was made possible by the effective roll - out of the covid - 19 vaccination programmes, especially in advanced economies, even as there was uneven distribution and supply of vaccines across the globe. the global economy is estimated to have expanded by 5. 9 percent in 2021 from a contraction of 3. 1 percent in 2020. however, the pandemic took a turn for the worst in some parts of the world in the second half of the year, with emergence of the new variants, delta and later in the year, omicron. given the economic recovery that involved imbalance between demand and supply and a surge in commodity prices, inflation increased globally, from an average of 3. 2 percent in 2020 to 4. 3 percent in 2021 ; and from 0. 5 percent to 5. 1 percent for the special drawing rights ( sdr ) countries and, regionally, from 3. 1 percent to 5. 9 percent in south africa. consequently, the weighted average inflation for botswana ’ s trading partner countries increased from 1. 7 percent in 2020 to 5. 5 percent in 2021. domestic economic developments in 2021 for botswana, gross domestic product is estimated to have expanded by 8. 6 percent in the twelve months to september 2021, compared to a contraction of 7. 3 percent in the year to september 2020. this was made possible by a combination of lesser movement restrictions in 2021 compared to 2020,

changes. in a market - based economy such as botswana ’ s, monetary policy influences inflation indirectly through its effect on interest rate changes, which then influence credit as a key means of financing expenditure on both consumption and investment. the effectiveness of interest rates in controlling credit is monitored closely. the bank also recognises that the rate of growth of government spending is an important component of domestic demand, since the government allocates large amounts of funds to finance public consumption and investment. the fact that the government plays a large role in the economy underscores the need for complementarity between fiscal and monetary policies in achieving the inflation objective. this is the policy framework that provides a backdrop to the bank ’ s assessment of the economic and financial environment over the past year, in which inflation or price developments took place. developments in inflation in 2002 as you will no doubt recall, the monetary policy statement for 2002 set an inflation objective range of 4 - 6 percent. in setting this objective, the bank was aware that headline inflation would be influenced by a number of transitory factors, especially the introduction of the 10 percent value added tax ( vat ) in july 2002. before the introduction of vat, annual headline inflation stabilised at around 6 percent during most of the first half of 2002. however, following the introduction of vat, and as you will recall, inflation started rising, and increased from 5. 9 percent in june 2002 to just over 11 percent by the end of the year. the bank had anticipated a temporary increase in headline inflation arising from the introduction of vat, of between 4 percent and 6 percent over and above underlying inflation. this prospect was conveyed in a press release in june 2002. it was pointed out, at the time, that the vat - related price increases would be a one - off temporary adjustment and that, in the absence of any significant second - round price effects, due for instance to compensatory wage increases, the impact of vat would not result in a sustained rise in inflation. in the event, and in line with the bank ’ s expectations, the effect of vat was that the month - on - month rate of change in prices rose from an average of 0. 5 percent over the twelve months to june 2002, to 3. 2 percent a month later in july 2002. thereafter, the monthly rate of price increases progressively slowed down to reach 0. 4 percent in october. the monthly price increase was then higher in november, primarily due to

##p ’ s cornerstones in stakeholder engagement for financial inclusion. the citi microentrepreneurship awards ( cma ), as the fruit of such remarkable partnership, serves as an important platform to convey the message that collaboration with a strong shared vision, coupled with responsive policies and platforms, can bring the best out of the filipino people. it is thus with great interest that i participate in this year ’ s cma. i look forward to the opportunity to discover promising micro - entrepreneurs whose experiences, achievements, and community contributions would serve as an inspiration to everyone. to my fellow nsc members, we indeed have some exciting work ahead of us. may the cma continue to nurture and empower filipino micro - entrepreneurs in the years to come. again, good afternoon and thank you all for coming. 2 / 2 bis central bankers'speeches

it also reflects our confidence in the ability of the banking industry to adapt to new operating standards. the challenges posed by these new standards will allow for the transformation of bank practices over time, and thus, provide greater financial resiliency and sustainability in the economy. i am confident that banks will, beyond compliance, remain supportive in their stance to facilitate a more collaborative implementation of basel ii as we both continue to learn and adapt. the issues tabled for discussion for today ’ s environmental scanning exercise are varied. i am certain that we all look forward to a fruitful discussion and exchange of insights with our speakers. thank you.

peter praet : the interaction between monetary policy and macroprudential policy speech by mr peter praet, member of the executive board of the european central bank, at the money, macro and finance research group conference on the resilience of the global financial architecture, london, 27 september 2018. * * * i would like to thank john hutchinson for his support in the preparation of this speech. introduction a decade on from the start of the global financial crisis, which led to the biggest drop in economic activity in euro area economies since the second world war, the euro area is currently experiencing a broad - based expansion. looking ahead, significant monetary policy stimulus is still needed to support the gradual build - up of price pressures for the sustainable return of inflation to levels below, but close to, 2 %. at this stage of the recovery, the main risk to price stability would be a significant slowdown in growth that could originate from rising protectionism, vulnerabilities in emerging markets and a global repricing of risk. the crisis has brought about a major overhaul of the regulatory, supervisory and macroprudential frameworks in europe. while this is expected to reduce the likelihood of systemic financial vulnerabilities taking root and morphing into a crisis, we should acknowledge that we are still in a transition phase. some major elements of the new frameworks still have to be implemented or finalised, and legacies from the previous crisis are still present. furthermore, some areas of the financial system are still not yet adequately covered by regulation, for example leverage in the non - bank financial sector. in my remarks today, i would like to elaborate on the interaction between monetary policy and macroprudential policy. i will first review the conceptual framework for monetary policy and financial stability and then look at how, at this stage of the cycle, macroprudential policy and monetary policy can best complement each other in the pursuit of their respective objectives. monetary policy and financial stability price stability and financial stability are tightly interconnected and mutually reinforcing ; in the longer - term, each is a necessary – but not sufficient – condition for the other. price stability contributes to the efficient allocation of resources in the real economy, thereby supporting longterm growth. a stronger and more stable macroeconomic environment contributes to healthy household and business balance sheets, thereby fostering financial stability. however, history abounds with cases where financial vulnerabilities were built up in good times, while

. sepa for cards – business rules the business rules are set out in the sepa cards framework ( scf ) by the european payments council ( epc ), as well as the ecb ’ s “ sepa for cards ” report of november 2006. of course, every agreement is to some extent a compromise which tries to accommodate as many views as possible. that is not to say that there is anything wrong with a compromise per se. without the ability to reach compromises we would, for example never have been able to agree on the design of the euro banknotes since, of course, every country believed its legacy banknotes to be the most beautiful. however, a compromise should not be too general leaving too much room for interpretation. i have already said on several occasions before that for me the scf document is perhaps too general. i think the scf requires further development, increased clarity and more detailed rules. let me also recall that in the sixth sepa progress report we proposed the creation of a card transaction processing framework. 1 this would set out the business rules for card schemes and processors with regard to the processing of sepa card transactions. but european projects and initiatives do not relieve individual stakeholders of the responsibility to contribute to european integration. major efforts by individual card scheme providers are needed too. although work has already started in some areas, it is far from finished. a number of tasks that i have highlighted on other occasions before are still outstanding : the effective separation of scheme management from processing entities in order to overcome barriers to entry and to contribute to fairer and greater competition between card schemes, as well as between processors ; the charges or reporting requirements that some schemes impose on issuers and acquirers for transactions carried out with cards bearing their brand, even if it was not used in the transactions ; the setting of the brand that will be used at terminals, without giving the retailer and / or cardholder any choice ; and the rule that in cross - border transactions, it is always the interchange fee of the country of the merchant that applies. europe is not the only region to recognise the importance of clear business rules for the proper functioning of the cards market. less than a month ago the canadian government released a code of conduct for the credit and debit card industry in canada, which promotes fair business practices and ensures that merchants and consumers understand the costs and benefits associated with credit and debit cards. this follows similar regulatory initiatives in the united states and significant efforts made in australia,

built, all governors will remain equally involved in future monetary policy decisions. however, they may not all have a vote at the same time. moreover, the participation of ncb - governors will continue to offer checks and balances and enhance the quality of decision - making. let me turn to the guiding principle of subsidiarity. clearly, the principle implies that, to a large extent, the spokes of the system take care of both inputs and outputs. given the heterogeneity of the euro area, this bottom - up approach to system tasks makes sense. thus, in dealing with economic, structural, or even linguistic differences and national preferences, the spokes are better positioned in the operation of monetary policy. the same goes for managing payment systems or the collection of statistics – tasks that i will leave aside for the moment. moreover, governors and their respective central banks bring in specific local knowledge and enhance healthy competition within the system – for example in the area of research. of course, as explained, we should be conscious of potential trade - offs between subsidiarity and the guiding principle of efficiency. as such, there is no denying that efficiency gains can be achieved in the production and distribution of banknotes. we need to pursue these possibilities. financial stability and banking supervision – national tasks of ncbs this brings me to the central bank tasks that fall outside the exclusive domain of the european system of central banks. for the dutch central bank, these tasks take up around half of its staff and relate to international financial relations, advising the government, financial stability and banking supervision. under the subsidiarity principle, these responsibilities lie close to the sovereignty of the nation state. nevertheless, there are clear links and synergies with the tasks of the european system of central banks – which, in fact, is an important reason for national central banks having these tasks. let me limit myself here to financial stability and supervision – given their importance in recent european discussions. according to the treaty, the european system of central banks as a whole shall contribute to the smooth conduct of policies pursued by competent authorities in the field of prudential supervision and financial stability. the collective responsibility to contribute to these policies follows from the financial stability task of the national central banks. this involvement in financial stability is a natural reflection of other tasks, including monetary policy, payment systems and – to varying extent – banking supervision. monetary policy relies on financial stability in order to be effective. in addition, in exercising oversight

euro is very popular and i think that assessment by the european population is correct. it is a very good invention for europe and i think for all of us in the euro area we should be proud of our common currency. one personal question. you are an academic, how do you see your new position now as chief economist? your position is very important in the ecb. so i think monetary economics, central banking is very closely connected to academia. one of the reasons the bank of finland is having this conference today is to recognise the importance of interaction between central bank officials like myself and university professors and students. this is an area where i ’ ve said in the speech the ecb has to be a learning organisation, we have to learn from our own research, from the university sector, from other central banks. so actually i think this is an area where i feel coming from a university background helps me in my current job. 2 / 2 bis central bankers'speeches

trade has almost tripled since 2000. in addition, intra - regional trade within asia is projected to account for an increasingly larger share of this expanding world trade. further liberalisation and greater regional economic and financial integration in asia will reinforce this trend. this presents substantial opportunities for east asian insurers to support the growing trade activities. after decades of strong growth, the asian region is also now the home to a middle income population of 500 million. this number is projected to increase by more than six - fold to 3 billion by 2030. the oecd also projects that by 2020, asian consumers will account for 40 percent of global consumption. within asia, structural reforms have also increased the importance of domestic sources of growth. asia ’ s rising domestic demand needs to be supported by the development of a much broader range of financing options for healthcare, education and retirement. this will result in the reduced need for high levels of precautionary savings, which in turn will contribute towards strengthening domestic demand. in addition, with rapid industrialisation, asia is also experiencing an unprecedented rate of urbanisation. between 1990 and 2010, asia - pacific ’ s urban population increased from 29 percent to 43 percent. it is projected that another 1. 1 billion people will be living in cities over the next 20 years, increasing the urban population to 55 percent by 2030. the region will also be faced with an ageing population in the years ahead, with asia accounting for 62 percent of the global elderly population by 2050. this transition is already experienced in countries like japan, south korea and hong kong. but other countries in the region are also converging at a fast rate. fundamental reforms in social and economic policies are now being pursued by most governments in the region to avert the risk that asia ’ s population will “ grow old before growing rich ”. such reforms seek to achieve higher levels of income needed to sustain adequate provisions for welfare as the effects of ageing on the workforce and as rising healthcare and pension costs begin to set in. during this recent two decades, there has also been a discernible shift towards voluntary private provision for healthcare and retirement, including defined contribution pension schemes, given the rapid increase in life expectancy and medical care costs. this trend will become more pronounced as the need to broaden the coverage of welfare is taking place in an environment in which fiscal consolidation is being pursued. as of 2009, the value of private pension funds in 19 oecd countries was almost 50 percent

on growth and welfare. softening this blow, at the very least, will be a key task over the coming decades. thank you for your attention. 7 / 7 bis central bankers'speeches

resolve all examination issues through discussion with the examiner - in - charge or reserve bank management, it is inevitable that examiners and bankers will sometimes differ over examination findings despite our best efforts. for those cases, the federal reserve has a robust appeals process, as well as an independent ombudsman, to provide institutions with a fair and thorough review of complaints. 11 a banking organization ’ s board or management may appeal any material supervisory determination to a review panel composed of reserve bank staff that were not involved in the original supervisory determination and that were selected after consultation with staff at the board in washington. bank managers may submit relevant information to this panel in writing and may appear in person. if the bank ’ s managers or board believe this panel ’ s decision did not address their concerns in a satisfactory manner, the bank may make a second appeal to the president of the relevant reserve bank. a third review – undertaken by the member of the board of governors with oversight responsibility for the federal reserve ’ s banking supervision, who at present is governor tarullo – can be requested if the institution is still not satisfied that its concerns have been addressed. the federal reserve ’ s ombudsman mediates complaints, facilitates appeals, and, where appropriate, refers matters to committees of the board. 12 we are working to increase awareness of the ombudsman ’ s office and encouraging bankers to use the ombudsman for matters that cannot be resolved at the local level. importantly, the ombudsman reaches out to every institution that has filed an appeal within six months after the appeal has been decided to ensure that no retaliation or other unjustified reactions have taken place. the ombudsman has broad authority to investigate claims of retaliation, and, when appropriate, will report complaints to the board. the board will not tolerate retaliation against banking organizations that file appeals or raise concerns about the supervisory process. beyond simple fairness, hearing concerns from banks about supervisory practices gives us extremely valuable feedback that will help us improve supervision and better understand the issues that banks and examiners confront in the field. for more information regarding the appeals process, see board of governors of the federal reserve system ( 1995 ), “ section 309 of the riegle community development and regulatory improvement act of 1994, intra - agency appeals process ”, supervision and regulation letter sr 95 – 18 ( march 28 ), www. federalreserve. gov / boarddocs / srletters / 1995 / sr9518. h

while employment in the business sector has been at a standstill for a long time. another shadow is the standstill in exports. looking at a somewhat longer period, we see that exports have not grown for two years, and have recently even contracted. this is connected first of all to moderating global demand, and also to problems specific to large companies, but exports, as we know, are also affected by the exchange rate of the shekel, which has strengthened in the past year. i should note that the aggregate sensitivity of exports to the exchange rate is not high. the estimate of exports ’ sensitivity to the exchange rate is just 0. 2. while the profitability of high technology companies is affected by the exchange rate, the sensitivity of low technology industries to the exchange rate is much higher. while the share of low technology and mixed - low technology manufacturing in exports is just 20 percent, these industries comprise about 60 percent of manufacturing employment. we take this fact into account as well when considering monetary policy decisions. monetary policy is faced with a number of challenges. as we know, the shekel strengthened in the past year. there are real forces strengthening the shekel, including mainly the fact that the israeli market is growing faster than other economies. but the forces for appreciation are also derived from the global monetary environment. obviously, the production of natural gas in and of itself is good news – it improves the energy situation in the economy and bis central bankers ’ speeches contributes to the balance of payments. but it also obviously has an effect on the exchange rate. as i noted, interest rates in the major economies are very low. the interest rate in europe was recently lowered to just 0. 25 percent, and the major central banks are continuing to pursue quantitative easing policies. this situation has led us to the low current interest rate of 1 percent. the low interest rate environments – both domestic and global – obviously have an effect on asset prices, including home prices. the lack of investment alternatives increases the demand for homes for investment purposes, while the housing market is also affected by the low level of supply. the government is making efforts to increase the supply of homes, but in the meantime, these efforts are not leading to a moderation of prices. monetary policy focuses on meeting the bank of israel ’ s goals : maintaining price stability, supporting economic activity, and strengthening and maintaining financial stability. for this purpose the bank of israel uses a number of tools. the main tool is, of course, the interest

potential to become a significant factor in the provision of credit to households, such a gap could have created pressure for lowering the standards for providing credit in the entire financial system. i attributed tremendous importance to the fact that alongside the implementation of the reform being presented here today, we will soon complete the legislation for establishing a financial stability committee, which will firmly establish the cooperation and coordination among the various financial system regulators. the committee will monitor, provide early identification, and handle risks to the financial system before they are realized. bis central bankers ’ speeches

karnit flug : increasing competition in the financial system remarks by dr karnit flug, governor of the bank of israel, at the cabinet meeting on increasing competition in the financial system, tel aviv, 13 june 2016. * * * i would like to express appreciation for the serious work done by the committee led by dror strum. the financial system is a complex system, and has unique characteristics that require indepth through regarding how reforms and changes are to be carried out. i am happy that in the end, after tremendous effort by all those involved, we have succeeded in formulating recommendations that will benefit consumers and maintain the stability of the system. the changes that we have agreed upon are very significant, particularly when taken as a whole. these changes, alongside initiatives led by the bank of israel and the banking supervision department - such as building a credit register, promoting greater efficiency in the banking system, and promoting technology and innovation in banking - will in the coming years create an advanced banking system that is more competitive in the retail and small business areas. it is very important, and we have agreed to this with the minister of finance and his team, that we now focus on the implementation of the reforms, and in general avoid promoting new legislative initiatives in the field of banking or support such initiatives. the change that we are proposing here is a sizable change, joining changes that have already been made, and it is important that we manage these changes responsibly and enable the system to get accustomed to them and prepare for them. it is important to emphasize that israel ’ s professional and stable banking system is an asset to the economy, and is essential in order to support the financing of the economic activity of households and small businesses. in contrast with banks in the us and europe, the israeli banks withstood the global financial crisis very successfully, remained stable, continued to function during the crisis, and saved the israeli economy from having to pay the high price paid by many other countries around the world in terms of loss of output, unemployment, and a heavy burden on taxpayers in rescuing failed banks. therefore, it is important that the changes be made in an intelligent and measured manner, while maintaining the stability of the banks and the financial system. the agreement that the supervision of the credit card companies will remain at the bank of israel is very important, in order to prevent a regulatory gap between banks and credit card companies in the provision of credit. as the credit card companies have the

frequency readings, has moved down since april, although it came in at 2. 6 percent in july, again remaining well above our 2 percent goal. in addition, the latest consumer and producer price index reports suggest that 12 - month core pce inflation in august was likely a touch above the july reading. the persistently high core inflation largely reflects pressures on housing prices, perhaps due in part to low inventories of affordable 1 / 5 bis - central bankers'speeches housing. the progress in lowering inflation since april is a welcome development, but core inflation is still uncomfortably above the committee's 2 percent goal. prices remain much higher than before the pandemic, which continues to weigh on consumer sentiment. higher prices have an outsized effect on lower - and moderateincome households, as these households devote a significantly larger share of income to food, energy, and housing. prices for these spending categories have far outpaced overall inflation over the past few years. economic growth moderated earlier this year after coming in stronger last year. private domestic final purchases ( pdfp ) growth has been solid and slowed much less than gross domestic product ( gdp ), as the slowdown in gdp growth was partly driven by volatile categories including net exports, suggesting that underlying economic growth was stronger than gdp indicated. pdfp has continued to increase at a solid pace so far in the third quarter, despite some further weakening in housing activity, as retail sales have shown further robust gains in july and august. although personal consumption has remained resilient, consumers appear to be pulling back on discretionary items and expenses, as evidenced in part by a decline in restaurant spending since late last year. low - and moderate - income consumers no longer have extra savings to support this type of spending, and we have seen loan delinquency rates normalize from historically low levels during the pandemic. the most recent labor market report shows that payroll employment gains have slowed appreciably to a pace moderately above 100, 000 per month over the three months ending in august. the unemployment rate edged down to 4. 2 percent in august from 4. 3 percent in july. while unemployment is notably higher than a year ago, it is still at a historically low level and below my and the congressional budget office's estimates of full employment. the labor market has loosened from the extremely tight conditions of the past few years. the ratio of job vacancies to unemployed workers has declined further to a touch below the historically elevated

alan greenspan : economic flexibility remarks by mr alan greenspan, chairman of the board of governors of the us federal reserve system, before the national italian american foundation, washington dc, 12 october 2005. * * * it is a pleasure once again to speak before the national italian american foundation. i have long since been awarded the status of honorary italian, for which i am sincerely appreciative. in my more than eighteen years at the federal reserve, much has surprised me, but nothing more than the remarkable ability of our economy to absorb and recover from the shocks of stock market crashes, credit crunches, terrorism, and hurricanes - - blows that would have almost certainly precipitated deep recessions in decades past. this resilience, not evident except in retrospect, owes to a remarkable increase in economic flexibility, partly the consequence of deliberate economic policy and partly the consequence of innovations in information technology. a couple of weeks ago, i outlined to a convention of fellow economists how i believe this all came about. i should like to share some of those views with you this morning. for this country's first century and a half, government was only peripherally engaged in what we currently term the management of aggregate demand. any endeavor to alter the path of private economic activity through active intervention would have been deemed inappropriate and, more important, unnecessary. in one of the more notable coincidences of history, our declaration of independence was signed the same year in which adam smith published his wealth of nations. smith's prescription of letting markets prevail with minimal governmental interference became the guiding philosophy of american leadership for much of our history. with a masterful insight into the workings of the free - market institutions that were then emerging, smith postulated an " invisible hand " in which competitive behavior drove an economy's resources toward their fullest and most efficient use. economic growth and prosperity, he argued, would emerge if governments stood aside and allowed markets to work. indeed, within a very few decades, free - market capitalism became the prevailing stance of most governments'economic policy, even if it was often implemented imperfectly. this framework withstood the conceptual onslaughts of robert owen's utopians, karl marx's communists and later, the fabian socialists. the free - market paradigm came under more - vigorous attack after the collapse of the world's major economies in the 1930s. as the global depression deepened, the seeming failure of competitive markets to restore full employment perplex

evaluation of the companies'underwriting standards and senior - management oversight of the practices used for ensuring compliance with consumer protection regulations and laws. the agencies have been working closely together and are scheduled to begin the on - site reviews in the fourth quarter. the partner agencies will share information about the reviews and make joint assessments of lessons learned. this project should also lay the groundwork for various additional forms of future cooperation to ensure more effective and consistent supervision and consumer protection. legislative responses beyond the actions underway at the regulatory agencies, i am aware that the congress is considering statutory changes to help alleviate the problem of foreclosures. modernizing the programs administered by the federal housing administration ( fha ) is one promising direction. the fha has considerable experience in providing home financing for low - and moderate - income borrowers. it insures mortgages made to borrowers who meet certain underwriting criteria and who pay premiums into a reserve fund that is designated to cover the costs in the event of default. this insurance makes the loans less risky for lenders and investors, and it makes the loans eligible for securitization through the government national mortgage association ( ginnie mae ). historically, the fha has played an important role in the mortgage market, particularly for first - time home buyers. however, the fha's share of first - lien home purchase loans declined substantially, from about 16 percent in 2000 to about 5 percent in 2006, as borrowers who might have sought fha backing instead were attracted to nontraditional products with moreflexible and quicker underwriting and processing. in addition, maximum loan values that the fha will insure have failed to keep pace with rising home values in many areas of the country. in modernizing fha programs, congress might wish to be guided by design principles that allow flexibility and risk - based pricing. to alleviate foreclosures, the fha could be encouraged to collaborate with the private sector to expedite the refinancing of creditworthy subprime borrowers facing large resets. other changes could allow the agency more flexibility to design new products that improve affordability through features such as variable maturities or shared appreciation. in addition, creating risk - based fha insurance premiums that match insurance premiums with borrowers'credit profiles would give more households access to refinancing options. the risk of moral hazard must be considered in designing government - backed programs ; such programs should not bail out failed

housing and mortgage markets. the federal reserve supported placing fannie mae and freddie mac into conservatorship to help stabilize an important source of housing finance. more recently, the federal reserve has announced that it will purchase $ 600billion in debt issued by the housing - related government - sponsored enterprises and in mortgage - backed securities backed by fannie mae, freddie mac, and ginnie mae, which could reduce funding costs for mortgages. it also is supporting foreclosure prevention and neighborhood stabilization efforts, which help reduce unnecessary foreclosures and their costs on communities. limiting foreclosures will also help reduce the risk that house prices will sink significantly below the level justified by fundamentals. the events of the past year and a half have highlighted the need for changes in our financial system. presumably, such changes may include a different balance between bank - based and market - based financial intermediation. as regulators of banks and thrifts, our job is not to determine what this balance should be. rather, our job is, and has been, to create an environment in which, in the short run, banks can step up to fill as much of the gap as possible that has been left by still - dysfunctional markets, consistent with a strong, stable banking system. over time, of course, we will need to work with the congress and the new administration to construct a system of oversight over both markets and institutions that better protects the stability of the financial system and the u. s. economy. see board of governors of the federal reserve system, federal deposit insurance corporation, office of the comptroller of the currency, and office of thrift supervision ( 2008 ), " interagency statement on meeting the needs of creditworthy borrowers ", joint press release, november 12.

an independent analysis and view on interest rate decisions is making a constructive contribution to public awareness and debate. and the public traffic to the bank ’ s web site has grown enormously, indicating a growing public appetite for our published statements and information. these are encouraging indications that the public is reacting to our communications and, in many cases, providing us with tangible feedback. 3. some practical challenges to a successful communications strategy implementing an effective communications strategy for monetary policy in 2004 has some very real challenges. today, i want to touch on a couple of these : first, how to communicate uncertainty ; and second, how to capitalize on new technologies, specifically an effective web site. ( i ) how to communicate about an uncertain future after many years of being involved in developing and communicating monetary policy, i have found that dealing with the simple fact that the future is uncertain is one of the most difficult communications challenges a central bank faces. clearly, financial markets are hypersensitive to anything a central bank says about the future because the markets are looking for indications about where interest rates may be going. this makes talking about the future all the more challenging. let ’ s remember, central banks do not have a crystal ball. economies are always subject to events and shocks that are unforeseen. and the fact that monetary policy operates over a medium - term time frame compounds the communications challenge. how can a central bank best address this communications challenge? i believe that we must be able to tell a coherent narrative - in other words, a story. the story has to explain the logic of central bank decisions, but allow the public and the markets to make their own assessment of future bank decisions. the story must be set in the context of a clear statement of the objective of policy, a view of the key macroeconomic relationships, especially the inflation process, and an understanding of the tools and the actions used to achieve our policy objective. but the story also has to recognize the forward - looking nature of monetary policy ; that is, the considerable time lags between monetary policy actions and their effects. and it has to recognize that the outlook is uncertain and that the future path of interest rates will be linked to developments in the economy. in other words, the outlook is conditional - conditional on assumptions, such as an assumption about the world price of oil, and on views and analysis based on circumstances at a given point in time. this may not be an easy story to tell. but for it to be as clear as

, asean - china trade volumes reached a record high of us $ 400 billion, and by 2015, asean is expected to be china ’ s top trading partner. as a result, in the next few years, we can expect a greater acceptance and use of the renminbi ( rmb ) as a trade settlement currency, especially in asean. what does this mean for us? china has already signed bilateral currency swap arrangements with key asean countries, such as singapore, malaysia and indonesia. corporates, investors and financial institutions need to be prepared if they are to capitalise on the opportunities brought on by the increasing internationalisation of the rmb. in february this year, singapore became the first country outside greater china to have a renminbi clearing bank when the singapore branch of the industrial and commercial bank of china ( icbc ) was designated as such. this was followed by mas and the people ’ s bank of china signing an enhanced bilateral currency swap agreement in april. examples of these stronger and pro - business rules are : ( i ) the procedures for investors to register their investment in order to benefit from protection under the agreement, are outlined clearly so that the procedures are transparent to investors ; ( ii ) policy - makers can more easily consider the views and feedback of the business community, as the acia has a consultations mechanism giving asean countries an official platform to stay engaged on acia matters and its implementation ; and ( iii ) the acia has a robust investor - to - state dispute settlement ( isds ) mechanism which will give investors additional recourse to seek redress or compensation if they have been treated unfairly by a government. bis central bankers ’ speeches the appointment of a renminbi clearing bank in singapore brings new functionality to the singapore financial system. the build - up of renminbi liquidity in singapore will encourage financial institutions in singapore to develop and offer a wider range of renminbi products and services. this will help meet the financing, investment, and risk management needs of the market. it will also strengthen the role of singapore as a leading global financial centre that serves asia and beyond. trans - pacific partnership ( tpp ) besides the rcep, singapore is also actively engaged in the trans - pacific partnership, or the tpp. the tpp negotiations currently involve 11 countries : australia, brunei, canada, chile, malaysia, mexico, new zealand, peru, singapore, vietnam and the united states. it aims to bring comprehensive duty - free market access as

to further intensify efforts to encourage consumers and businesses to use the electronic payments systems. promotional programmes and greater consumer education activities also have to be escalated to promote confidence in internet transactions and the use of electronic means of payments. the need to build up consumer awareness is essential in an environment that is becoming increasingly challenging and complex. consumers need to be informed and convinced that the payment infrastructure is safe, efficient and reliable, and that there is an adequate consumer protection mechanism for consumers to be able to confidently use and enjoy the advantages of a low cost and effective payment system. one of the main challenges is to combat fraud. the rising incidences of internet - based identity theft and phishing scams globally require the banks to remain vigilant about the possible security risks and employ effective security measures and internal procedures to protect their customers. banks should remain one step ahead in this endeavour. in this regard, i wish to congratulate the banking institutions for completing the chip - based atm cards migration, and introducing emv - compliant credit cards and terminals to combat fraud, a technology leap that was indeed a challenging task. while the conversion of the credit card infrastructure to be emv - compliant is an ongoing effort, i wish to commend the industry players, the issuers, acquirers and the affected merchants, particularly the petrol industry, for their positive response towards meeting the migration deadline. ladies and gentlemen, the desired migration to an electronic payments environment will not only be engineered through secured system architecture and active promotional programmes, but also induced by greater transparency. banks need to be more transparent in the delivery and pricing of financial services, and highlight the underlying motivation and activities that banks undertake in prescribing financial services. pricing will affect consumers ’ preference and behaviour. in this regard, banks need to understand their own cost structure and price the payment services accordingly, to provide the incentive for the shift to electronic payments to take place. to foster greater efficiency in the payments system, its charges relative to other means of payments need to be structured accordingly to encourage greater use of the electronic channels as the preferred mode. these moves also need to be complemented with ample provision of electronic payment methods that are comparable to the other means of payments in terms of its reach and convenience. ladies and gentlemen, bank negara malaysia attaches great importance to payment system efficiency and will also continue to promote its security, reliability and efficiency, together with the industry and payment service providers, to foster an innovative payments industry. the fp

, the profit sharing and risk sharing characteristics in islamic finance strengthen the incentives for the financial institutions to ensure the profits are commensurate with the risks being assumed. it is this form of finance that we would want to encourage. with this underlying foundations, efforts are being directed to build the domestic financial infrastructure. a challenge that is being specifically addressed is the development of an active secondary global sukuk market. in this regard, there has been a lack of trading in the secondary market especially in the usd sukuk market as the investors tend to buy - and - hold the instruments until maturity. this is largely due to the scarcity of the instruments in the market. in malaysia, the growing ringgit sukuk market has resulted in an active secondary market. this is largely due to the regular and varied issuances throughout the year. this is supported by the investment in research and development and in talent development to ensure the availability of expertise in the structuring of sukuk instruments and in sukuk documentation. having the potential to innovate new instruments will depend on having the necessary talent. this is an area of focus in malaysia to develop the skills, expertise and capability. the islamic financial system in malaysia now offers a wide range of financial products and services that are competitive and able to meet the changing requirements of the domestic and global economy. way forward for the global islamic financial system as we advance forward, we need to recognise the forces of change and the transformation taking place in the international financial system and global economy. relentless efforts have been initiated to reform the international financial system by the international community to address the weaknesses that have contributed to the recent crisis. in this environment, islamic finance needs to continue to evolve to remain effective and competitive. the islamic financial system does not exist in isolation and will continue to develop as an integral part of the global financial system. as part of efforts to ensure sustainability in this new and more challenging environment, a task force on islamic finance and global financial stability was formed by the islamic development bank ( idb ) and the islamic financial services board ( ifsb ). the report, which was completed in april this year, sets out eight areas that need to be further strengthened to bring the islamic financial system to a higher level of performance in this new economic and financial order that is emerging. a recommendation of the report is the establishment of an islamic financial stability forum ( ifsf ) based at the ifsb as a strategic platform for productive dialogues to promote

a number of specialized initiatives. these included establishment of a well defined structure of credit institutions to promote savings and capital formation and to widen and deepen flow of agricultural and industrial credit. 12. apart from furthering the development of cooperatives to provide short - term credit to agriculture, the reserve bank established a separate institution, viz., the national bank for agriculture and rural development ( nabard ) for provision of medium - term and long - term refinance for agriculture and rural development as also for providing consultative service to the government and banks and generally coordinate its activities in area of agricultural credit with those of the agencies engaged in purveying such credit. further, in the absence of an active capital market, the reserve bank actively assisted in setting up of several specialized financial institutions at all india and also regional level, to widen the facilities for term - finance to industry and for institutionalization of savings. this included establishment of industrial finance corporation of india ( ifci ), state financial corporations, industrial development bank of india ( idbi ) and unit trust of india ( uti ). in order to provide a safety net for the small depositors and to encourage commercial banks and other financial institutions to grant bis central bankers ’ speeches loans to various categories for small borrowers, the reserve bank promoted the deposit insurance and credit guarantee corporation of india limited ( dicgc ) for providing insurance and guarantees against the risk of default in payment by the banks or to the banks. 13. further, the reserve bank also helped establish specialized institutions for specific type of financing, like national housing bank ( nhb ) and export import bank of india ( exim bank ). for ushering in market making in government securities and treasury bills, the reserve bank established the discount finance house of india ( dfhi ) and the securities trading corporation of india ( stci ). the reserve bank also helped promote market infrastructure institutions like the clearing corporation of india ltd ( ccil ) and the national payment corporation of india ltd ( npci ). expansion of the scope and reach of the indian banking system 14. even though, up to the late 1960 ’ s the indian banking system made reasonable progress, there were still many rural and semi - urban areas which were not served by banks. the large industries and the big and established business houses tended to enjoy a major portion of the credit facilities, to the detriment of the priority sectors such as agriculture, small - scale industries and exports. thus, with the primary objective

raises fears relating to immigration and cultural impacts. what then can be done to improve readiness for labor mobility thereby strengthening asean citizenship? for the benefit of further exploration, i would like to propose that we consider a threepronged strategy as part of a sustainable solution to this problem : first, we should try to reduce short and long - term obstacles to labor mobility. it is critical to recognize that greater labor mobility brings greater competition for local professionals. this means that, in the medium and longer term, the “ brain drain ” is usually offset by remittances and a “ reverse brain drain ”, which brings wealth, skills, experience, and their business and social networks back home. therefore, actions are needed to further enhance the free flow of labor through increased use of mutual recognition of professional qualifications. forging university and regional professional networks will surely be supportive of this endeavor. visa, work permits, and regulatory requirements on foreign employment are all important issues that need to be quickly addressed to ensure that the investment environment is competitive. over the longer term, i also see it as very crucial that we address obstacles to integration at the root cause, which is the weak integration mindset. this integration mindset means that we need to assess the benefits and costs of integration more deeply and strategize how they fit with the overall economic development plans of individual asean member countries. there are dangers in allowing such an important assessment to remain vague. my concern is that many key stakeholders of asean integration still view the aec with cynicism ; that life will go on, with few changes to the status quo. and this complacency is very dangerous because we may wake up and find that we are already too late to catch the rising wave of asean. distinguished participants, the second part of this three - pronged strategy deals with human capital development to meet global competencies. my personal opinion as a ceo in the financial industry is that we need people or our human resources in the next decade to be assertive, flexible, analytical and quantitative, technology competent, as well as having strong leadership, people skills, foreign language proficiency, and cultural awareness. ceos in other industries can add more qualifications to this list according to what they need to satisfy future business bis central bankers ’ speeches solutions. moreover, to promote mobility, our local talent competency should also aim for a better fit with regional and global competency. in the case of thailand, broad statistical profile points to above 50 percent share of education

building in response to the faster population growth. indeed, it took the better part of a decade for this adjustment to take place ( graph 4 ). this slow adjustment is one of the factors that contributed to the large increases in housing prices in some of our cities over recent times. the adjustment, though, has now taken place, with growth in the number of dwellings exceeding growth in the population over the past four years. https : / / www. rba. gov. au / speeches / 2018 / sp - gov - 2018 - 08 - 08. html 4 / 18 8 / 8 / 2018 demographic change and recent monetary policy | speeches | rba graph 4 i have spoken about these adjustments on previous occasions. rather than cover this material again, i would like to focus on something that receives less attention, but is no less important – that is, how the changes in our population dynamics have affected some of australia's key demographic indicators. of particular importance is the fact that, on average, new migrants to australia are younger than the resident population. workers coming to australia tend to be relatively young and so too, obviously, are most students. the median age of new migrants is between 20 and 25, which is more than 10 years younger than the median age of the resident population. over the past five years, over 80 per cent of net overseas migration has been accounted for by people under the age of 35 ( graph 5 ). https : / / www. rba. gov. au / speeches / 2018 / sp - gov - 2018 - 08 - 08. html 5 / 18 8 / 8 / 2018 demographic change and recent monetary policy | speeches | rba graph 5 this inflow of younger people through immigration has significantly reduced the rate of population ageing in australia. the median age of australians is currently 37. back in 2002, australia was expected to age quite quickly, with the median age projected to increase significantly to over 45 by 2040 ( graph 6 ). but after a decade of increased immigration of younger people, the latest estimate is that the median age in 2040 will be around only 40 years. this is a big change in a relatively short period of time, and reminds us that demographic trends are not set in stone. https : / / www. rba. gov. au / speeches / 2018 / sp - gov - 2018 - 08 - 08. html 6 / 18 8 / 8 / 2018 demographic change and recent monetary policy | speeches | rba graph 6

the labour market will recover as the output gap closes and the divine coincidence that i talked about earlier will eventually be re - established. this happens as output increases, firm creation and business investment picks up, and capacity is rebuilt. as this occurs, the signals coming from the labour market gap and output gap will become more consistent. of course, there is a risk that additional capacity won ’ t be added fast enough to keep the output gap from temporarily going positive. an economy pushing up against the limits of its capacity may be just what is required to signal the need for additional investments and to draw workers back into the labour force. there is uncertainty about how much potential can be rebuilt, and we need to take this into account in our risk - management approach to monetary policy. our inflation - targeting framework gives us flexibility on the timing to achieve the inflation target while also taking into account other important dimensions of the economy – such as financial stability and the economy ’ s potential. 19 stifling the rebuilding phase of the recovery could mean lost economic opportunity. that being said, if potential output growth turns out to be lower than we think, we have the tools to bring inflation back to target. conclusion there is no doubt that the canadian economy has room to grow. the stronger u. s. economy, a lower dollar and our monetary policy response will work to keep the recovery in canada on track and to get inflation sustainably back to target. there will be some adjustments across the country as non - energy exporters take on the mantle of growth. as this happens, canadian firms and workers will need to demonstrate the impressive ability to adjust that we have seen in the past. monetary policy is contributing to this effort by providing an environment of low and stable inflation, while supporting the adjustments needed to return the economy to sustained and balanced growth. we ’ ll get there and it will be a very good thing for canada. m. carney, “ a monetary policy framework for all seasons ” ( speech to u. s. monetary policy forum, new york, new york, 24 february 2012 ). bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches bis central bankers ’ speeches

pace of external financial liberalisation. it is essential to take into account the risks associated with it while resetting an accelerated pace of a gradualist approach. the recent experience in many countries shows that periods of impressive macroeconomic performance generate pressures for speedier financial liberalisation since everyone appears to be a gainer from further liberalisation, but the costs of instability that may be generated in the process are borne by the country, the government and the poorer sections. avoiding crises is ultimately a national responsibility. the approach to managing the external sector, the choice of instruments and the timing and sequencing of policies are matters of informed judgment, given the imponderables. as noted earlier, not only do global developments influence india, but the growing size of india has also implications for the global economy which would have also to take in to account the evolving demographic dynamics in countries such as india. over the next halfcentury, the population of the world will age faster than during the past half - century as fertility rates decline and life expectancy rises. in europe, the demographic profile is already tilted towards the higher age group and by 2050, this is projected to accelerate. projections suggest a turning point between 2010 and 2030 when the european union, north america and japan will experience a substantial decline in savings rates relative to investment which may be reflected in large current account deficits. most of the high performers of east asia and china are in the second stage of the demographic cycle. elderly dependency is expected to double in these countries by 2025. their working age populations will increase modestly first and then shrink. these projections suggest that east asia could increasingly become an important supplier of global savings up to 2025 ; however, rapid population ageing thereafter would reinforce rather than mitigate the inexorable decline of global savings. india is entering the second stage of demographic cycle and over the next half - century, a significant increase in both savings rate and share of working age population is expected. the share of the labour force in population in india is expected to overtake the rest of asia, including china, by 2030. looking ahead, the rest of the world may increasingly rely on 7 / 9 china and india for supplies of both labour and capital and this could significantly influence the evolution of the global economy. it is evident that china and india will have to give high priority to generating employment and both are poised for substantial increases in productivity. the global economy will have to contend with the implications of these developments on prices

the point about customer ’ s perception about how he / she is being treated by a bank. is the bank being fair to him / her in matters of interest rates, penalties, service charges and that he / she has not to fear any hidden costs and charges at a later date. further, the customer also draws comfort from the fact that he or she is not being discriminated against vis - a - vis a new customer. we only advocate that customers be treated fairly. everyone would like to have cheaper services. however, the minimum we can offer is fairness, speed and delivery. and this is entirely in banks interest. 9. appropriateness of the “ sell ” is an important aspect that cannot be lost sight of. customization, tailoring the products to suit individual needs and always ensuring that a customer ’ s individuality is respected are necessary ingredients of the bank marketing strategies. we have to give what the customer wants and not merely sell what we have! while doing this exercise, aspects such as pricing, product features, service quality standards, grievances redressal mechanism, etc need to be properly documented, disclosed and explained to the customer in simple understandable terms. the broad principles of fair treatment of customers would, therefore, have certain basic tenets like transparency, nondiscriminatory pricing, full and proper disclosure about product / service quality standards, risks to which a customer could be exposed, ability to exit if the product / service is not what the customer wanted and a host of such other issues. 10. now, let me revert to the role of technology in customer service. it is no one ’ s case that banks have not embraced technology. in fact, most public sector banks in india in the last decade have gone through a phase of technology up - gradation and have migrated to core banking solution ( cbs ) platform. adoption of technology has changed the face of the banking sector which is manifest in the various transformational developments of the recent past. the benefits of technology are, however, not commensurate with the developments. the speed, cost, convenience and efficiency of banking services have not improved by factors that technology enables one to achieve. a part of the problem is that banks are yet trying out fledgling delivery models rather than putting in place a cost - effective, decentralized and realistic delivery model. fixing a problem / glitch when it happens thus becomes the weakest link in providing efficient customer service. 11. a large

22 by joseph heller, in which a “ catch - 22 ” is an intolerable situation where every apparent alternative only draws the protagonists ever closer towards their fate. in heller ’ s novel, it ’ s the contradictory rules that put the american soldiers into an absurd situation. in the euro area, it was primarily the lack of rules regarding this dilemma that was pivotal : there was no rule which stated that, if the worst comes to the worst, it was mainly up to the investors and creditors to shoulder banks ’ losses, and not taxpayers. this is also precisely what makes the new european regime for bank resolution, and its rigorous application, so very important. because these are the rules which stipulate that if a bank needs to be wound up, investors and creditors will be first in line to bear the ensuing losses. only after that does a resolution fund financed by banks step in. add to that the close - knit sovereign - bank nexus in the euro area, as evidenced by the huge stocks of government bonds which banks hold on their balance sheets. this is why it is not enough to just focus on bank resolution. 4. 3 abolish preferential treatment of sovereign bonds it would be enough to curb banks ’ appetite for government bonds to force them to treat sovereign exposures on their books in exactly the same way as private ones. because, unlike in the case of corporate bonds, banks are not required to back government bonds denominated in domestic currency with capital, nor do they have to comply with any ceilings or caps. this is the case irrespective of the issuing sovereign ’ s credit rating quality – and even though the euro area debt crisis made it quite plain that government bonds are by no means risk - free. only when banks hold sufficient capital against government bonds and limits are placed on the size of individual exposures will banks be able to cushion a restructuring of sovereign debt. and only then will there probably be the political will needed to take this step. the bundesbank has put the topic of abolishing the preferential treatment of government bonds on the agendas of international committees. but the talks, particularly on the basel committee on banking supervision, are not straightforward. that ’ s why it ’ s now vital that we give the issue greater prominence on the european committees and make headway there. ladies and gentlemen, toughening the fiscal rules, abolishing the preferential treatment afforded to government bonds, and automatically extending the maturity of sovereign debt are three important

stands a more realistic chance of restoring the balance between actions and liability. it essentially means bolstering the principle of independent national responsibility. only when public finances are put on a sound footing and countries stop drifting apart economically will the eurosystem ultimately be relieved of the pressure to constantly intervene as a firefighter. and only then will the financial markets do their job of taking adequate account of risks in their lending activities. but what would have to change for monetary union ’ s regulatory framework to function better than it has done in the past? to paraphrase johann wolfgang von goethe : “ easier said than done. ” goethe was not just a poet, but also finance minister for the duchy of saxe - weimar - eisenach. whether or not this bon mot summed up his experiences in fiscal policy is unclear, however. in any case, his remark holds true for the fiscal rules in the euro area : established with the best intentions, but rarely adhered to consistently. the european union ’ s budgetary and debt rules have been reformed over and over again. but that did not make them any stricter, to put it mildly. i have already mentioned that not even germany set a shining example in the early days. the latest reform of the stability and growth pact originally set out to strengthen the binding force of the rules on debt. as it turned out, that reform created considerable discretionary scope, mainly for the european commission. we also drew attention to this in our june monthly report. 6 the commission has already exploited this leeway on several occasions and invariably interpreted the rules very liberally in doing so. the commission ’ s dual role as the guardian of the eu treaty on the one hand and as a political institution on the other is undoubtedly a factor in the repeated compromises made at the expense of budgetary discipline. after all, as a political institution, the commission must always strive to strike a balance between the various political interests of the member states. the outcome is that individual euro area countries have breached the budgetary rules ever since the financial crisis erupted. austrian comic werner schneyder once accurately characterised the situation as follows : europe, he quipped, is made up of countries that do not want to be told to do what they have decided to do themselves. 4. 1 reinforce the binding effect of fiscal rules what is needed to reinforce the binding effect of the fiscal rules is a straightforward and transparent design and implementation of the rules. an independent institution taking over responsibility for fiscal

gross basis as and when instructions are received by the system. 5. the financial globalisation process the implementation of sound monetary policies and the establishment of a sound and well - managed banking sector, effective financial markets, and an efficient national payment, clearing and settlement system, were regarded as important preconditions for the extension of south africa ’ s participation in the process of financial globalisation. as a further important element of the process, south africa is also removing exchange controls on a gradual and structured basis. there are, at this stage, no more exchange controls on any current account transactions ; all controls were removed on non - residents who are now free to bring funds into south africa and to repatriate funds for any purpose ; restrictions on residents to make investments outside of the country have been eased for corporates, institutional investors and private individuals, who may make foreign investments within fairly generous prescribed limits. these limits are being raised gradually until they will become ineffective. the south african approach on financial globalisation is that it is in the interest of the country to have access to foreign funds, and that we must therefore apply domestic financial and other macroeconomic policies that will make the country attractive to the foreign investor. furthermore, policies in south africa must be flexible enough to adjust quickly and decisively to changes in foreign investor sentiment. when capital inflows subside, or switch into outflows, as a minimum : n n n n the exchange rate must be allowed to absorb part of the shock ; an outflow of capital must reduce liquidity in the banking sector ; interest rates must be allowed to rise ; and some inflationary pressures will develop that will require, almost immediately, more restrictive monetary and fiscal policies. these adjustments will obviously not be painless, but will provide a basis for re - establishing confidence in the shortest possible time.

benoit cœure : interview in kathimerini interview with mr benoit cœure, member of the executive board of the european central bank, in kathimerini, conducted by ms eirini chrysolora and published on 5 september 2018. * * * does the completion of the programme mark a new era for greece in your view? is enhanced surveillance not just a continuation of the programme? let me start by saying that it would be all too easy to take the opportunity of greece graduating from the programme to turn the page and say “ mission accomplished ”. the programme years have been very difficult for the greek people. policymakers across europe have a duty to learn the lessons of this painful journey and improve policy, at both european and national levels. with hindsight, one can argue that the design of the programmes could have been more effective in supporting social safety nets and combating rent - seeking, that the pace of reform of the financial sector could have been faster, and that the need for debt reduction was overlooked by creditors. all this has gradually improved over time. i would like to congratulate the greek government for its remarkable work in recent years, implementing key reforms in the economy and the society in general and in the financial sector in particular. for example, social solidarity income helps direct scarce resources to those who need them most, and opening up industries or sectors, such as pharmacies, benefits households which have borne the brunt of crisis adjustment. regarding the financial sector more specifically, the new legislative framework provides much better support for reducing non - performing loans ( npls ) compared with the situation a couple of years ago. this will help banks support economic growth and job creation more effectively. but let ’ s not forget where it all started. never again should a euro area country end up in such an unsustainable position as greece ’ s in 2010. we need responsible national fiscal and economic policies, and a better euro area governance framework. as for enhanced surveillance, it is not a new programme but rather a strengthened form of cooperation between greece, the european institutions and the euro area countries to support the transition towards full market access. make no mistake, the burden of gaining the trust of markets and depositors has now fully shifted to the greek government. don ’ t expect building trust among investors to be easier than convincing the institutions. what will be the ecb ’ s role in the context of enhanced surveillance? will you provide your contribution as in the past

dimitar radev : eurozone slowdown likely temporary publication in the mni based on an interview with mr dimitar radev, governor of the bulgarian national bank, conducted by mr luke heighton and published on 17 may 2019. * * * the eurozone slowdown may prove temporary, the governor of the bulgarian national bank told mni, but whether europe emerges from the current soft patch by the second half of 2019 is uncertain. " the euro area ’ s economy beat many economists ’ expectations in the first quarter. but the pace and direction of the economy over the coming months and quarters are yet to be seen, ” said dimitar radev, a member of the european central bank ’ s general council since his 2015 appointment, noting the persistence of global trade tensions and “ political developments ” in europe. " recent data may be interpreted as signs that the region ’ s slowdown may be temporary, ” he said in an emailed response this week to questions. asked whether slow eurozone growth pointed to ‘ japanification ', he replied : “ comparisons with previous historical episodes and other economies do come to mind when we observe prolonged periods of slow growth, very low interest rates and aging population in europe. " " policy responses may be effective only as long as they target structural areas, such as education, labour market and pension reforms. the focus needs to remain clear : to stimulate productivity and competitiveness, ” he said, calling for more growth - oriented fiscal policies. " this does not necessarily mean higher spending. moreover, higher spending would be counterproductive in countries with no fiscal space. " — policy review radev, was circumspect regarding recent calls for a review of the ecb ’ s monetary policy strategy. he also expressed caution in response to suggestions the institution should lower its mandated medium - term inflation rate target from close to but below 2 % to around 1 %. " there may be reasons to start thinking if an overhaul needs to be considered, ” he said. but he added : “ whatever, if anything, the ecb decides in this regard should be shaped into a carefully communicated process. i cannot but fully agree with a recent comment by peter praet who warned that such public announcements may be misread and, furthermore, interpreted as the ecb admitting to having failed on its mandate, which is not the case. " the ecb has “ plenty of instruments ” at its disposal in the event of a severe economic down

investment activity is subdued. the central bank's judgement remains that the domestic banking system is resilient to this downturn. in residential housing, an ongoing deficit in supply continues to drive prices domestically, and around 52, 000 new homes per annum could be needed to meet demand. despite these imbalances, there are no signs of excessive risk taking in mortgage credit, while aggregate mortgage credit growth remains moderate. more broadly, the irish economy is growing strongly and modified domestic demand is expected to grow in 2024 and 2025 at a faster pace than at the time of the last review. however as international investment and multinational enterprises ( mnes ) are central 1 / 2 bis - central bankers'speeches to the domestic economic model, driving a significant share of growth, public finances and employment, ireland is particularly exposed to global developments at a time of increased geopolitical and geoeconomic risk. moreover, with an economy performing at or above capacity, expansionary fiscal policy risks aggravating domestic pressures. irish households and businesses have been supported by a growing economy, but are also exposed to global shocks. households have weathered the period of higher interest rates, with the amount of income spent on debt repayments remaining stable. this follows a substantial decline in interest expenses in the decade after the global financial crisis ( gfc ). however, a shock to international trade could have knock - on effects for the labour market here, as well as the performance of domestic firms. irish small and medium - sized enterprises ( smes ) have shown resilience, but there are pockets of risk, for example with insolvencies rising in the accommodation / food and other services sectors although we have continued to observe employment growth in these sectors. domestic bank profitability has likely reached its cyclical peak, following strong growth over the last couple of years. however the banking sector is resilient and is well - placed to withstand any softening in profits. against this backdrop, we are maintaining an unchanged policy stance for macroprudential capital buffers. the counter - cyclical capital buffer ( ccyb ) rate remains at 1. 5 per cent. the central bank's mortgage measures aim to ensure sustainable lending standards and evidence suggests the measures continue to meet their objectives. recent developments in new mortgage lending show a shift towards lti and ltv limits, but the share of new lending in the most risky categories is contained. borrowing levels relative to incomes continue to be materially lower than in the early

level by fomc participants in march was 3 percent, more than a full percentage point below pre - crisis estimates. this decline in the long - run neutral rate, and an even larger decline in the short - run neutral rate, imply that even the very low rates of recent years may be providing less support to the economy than may appear. at present, the median fomc participant estimates that we will reach a long - run neutral level by year - end 2019 if the economy performs about as expected ( figure 6 ). the balance sheet in september 2014, the fomc outlined its plans for the balance sheet. that initial guidance has been supplemented over time in other fomc communications, most recently in the minutes of the may meeting. here is a summary of the key points : over this period, the size of the balance sheet has been maintained by our reinvestment policy, which i will consider later in the remarks. - 7 • normalization of the balance sheet will commence only after the normalization of the level of the federal funds rate is well under way. 10 most fomc participants think that this condition will be satisfied later this year if the economy continues broadly on its current path. 11 • the balance sheet will be allowed to shrink passively as our holdings of treasury and agency securities mature ( or prepay ) and roll off. 12 • the process will be gradual and predictable. as noted in the may minutes, although no decisions have been made, the committee has discussed preannouncing a schedule of gradually increasing caps on the dollar value of securities that would be allowed to run off in a given month. • the committee will continue to use the federal funds rate as its principal tool for adjusting the stance of monetary policy. 13 • once the process of balance sheet normalization has begun, it should continue as planned as long as there is no material deterioration in the economic outlook. 14 see board of governors of the federal reserve system ( 2015 ), “ federal reserve issues fomc statement, ” press release, december 16, https : / / www. federalreserve. gov / newsevents / pressreleases / monetary20151216a. htm. see board of governors of the federal reserve system ( 2017 ), “ minutes of the federal open market committee, may 2 - 3, 2017, ” press release, may 24, https : / / www. federalreserve. gov / newsevents / pressrel

nontraditional mortgages, particularly the " payment shock " if the loan's interest rate increases, or when the consumer is required to make fully amortizing payments. it is important for consumers to have the information necessary to understand the features and risks of these types of mortgages. as bankers create more complex products, they should pay particular attention to improving the quality of their disclosures and sales practices, so that consumers can clearly understand the features of those products. the federal reserve is committed to improving the information consumers receive about these products, including improving the disclosures required under the u. s. truth in lending act. as we work to improve the understanding of disclosure information to consumers, the federal reserve also engages in outreach activities and conducts research to help us better understand consumer behavior and inform our judgment with regard to the best approaches to achieve consumer understanding. to this end, we sponsor consumer surveys, hold public hearings, discuss issues with our consumer advisory council, and conduct consumer focus groups and other types of consumer testing. conclusion the topics i have focused on this morning, portfolio concentration risk in cre, improved risk sensitivity of basel ii, enterprise wide compliance of bsa / aml and clear communication to consumers about complex products, emphasize that risk management needs to be integrated into daily operations of banks. as an organization chooses to accept more risk exposure to implement its strategies, it is imperative that the organization strengthen its risk management practices appropriately. a bank should clearly understand the implications of the risks it chooses to accept, ensure that the risk mitigants it has chosen work effectively, and that capital is strong enough to support the bank throughout an extended period of unexpected losses. i would also like to note that the federal reserve has an excellent working relationship with the financial services authority and the bank of england. we have worked together effectively on bankspecific issues and broader questions of regulatory policy and financial stability. while there is a wide range of issues with which supervisors must grapple, including those i have discussed today, i believe that supervisory cooperation can indeed create a safe and sound global marketplace while allowing financial institutions to remain prosperous.

- 24. 14 for various uncertainties regarding climate change and the policy responses, see pindyck, r. s., " what we know and don't know about climate change, and implications for policy, " environmental and energy policy and the economy, vol. 2 ( 2021 ) : pp. 4 - 43. 15 scientific knowledge on climate change is regularly updated. in august, the intergovernmental panel on climate change ( ipcc ) released climate change 2021 : the physical science basis, the working group i contribution to the sixth assessment report. in this report, the assessment has been updated, stating it is likely that the global proportion of major ( category 3 - 5 ) tropical cyclone occurrences has increased over the last four decades and that this cannot be explained by internal variability alone ; in other words, it likely is caused by human activities. that said, the assessed level of confidence is low for long - term trends in the frequency of all - category tropical cyclones ( https : / / www. ipcc. ch / report / ar6 / wg1 / downloads / report / ipcc _ ar6 _ wgi _ spm. pdf ). 16 the increase in the number of natural disasters since the 1970s may be due to improvement in the accuracy of statistics. inui, t., " shizen saigai to keizai seicho, " keizai semina, no. 706 ( february / march 2019 ) : pp. 22 - 5. nothing. " if we do not take action now, significant negative effects may become evident or increase 20 or 30 years later. this is called the " tragedy of the horizon. " 17 the second issue is whether central bank actions on climate change relate to their mandate. of course, the very existence of central banks is a product of history, and their mandate has evolved over the years as they have responded to market failures. 18 in the case of japan, the bank's current mandate, as stipulated in the bank of japan act, is to maintain price stability and financial system stability. the purpose of maintaining price stability is to " contribute to the sound development of the national economy, " and climate change, in terms of associated physical and transition risks, is likely to affect such development through prices and the financial system. as such, central banks can address climate change within the scope of their mandate, and this is not mission creep. however, even when they take action, it is extremely important to appropriately

( 1961 - 2019 average, y / y % chg. ) fy 00 note : in the left - hand chart, figures are those for 23 oecd member countries for which data from 1961 onward are available. sources : world bank ; cabinet office.

efficient capital stock. the high productivity growth rate of the past decade does not suggest a problem. but our success in attracting savings from abroad may be masking the full effect of deficient domestic saving. * * * our day - by - day experiences with the effectiveness of flexible markets as they adjust to, and correct, imbalances can readily lead us to the conclusion that once markets are purged of rigidities, macroeconomic disturbances will become a historical relic. however, the penchant of humans for quirky, often irrational, behavior gets in the way of this conclusion. a discontinuity in valuation for statistical methodology see karen dynan, kathleen johnson, and karen pence, “ recent changes to a measure of u. s. household debt service, ” federal reserve bulletin, vol. 89 ( october 2003 ), pp. 417 - 26. judgments, often the cause or consequence of a building and bursting of a bubble, can occasionally destabilize even the most liquid and flexible of markets. i do not have much to add on this issue except to reiterate our need to better understand it. * * * the last three decades have witnessed a significant coalescing of economic policy philosophies. central planning has been judged as ineffective and is now generally avoided. market flexibility has become the focus, albeit often hesitant focus, of reform in most countries. all policymakers are struggling to understand global and technological changes that appear to have profoundly altered world economic developments. for most economic participants, these changes appear to have had positive effects on their economic well - being. but a significant minority, trapped on the adverse side of creative destruction, are suffering. this is an issue that needs to be addressed if globalization is to sustain the necessary public support. * * * the competitive state of banking, the subject of this conference, will be significantly affected by the path of global financial and technological innovations. in my judgment, this will be among the most significant developments affecting banking in the next decades.

their spending. to be sure, indexes of house prices based on repeat sales of existing homes have outstripped increases in rents, suggesting at least the possibility of price misalignment in some housing markets. a softening in housing markets would likely be one of many adjustments that would occur in the wake of an increase in interest rates. but a destabilizing contraction in nationwide house prices does not seem the most probable outcome. indeed, nominal house prices in the aggregate have rarely fallen and certainly not by very much. still, house prices, like those of many other assets, are difficult to predict, and movements in those prices can be of macroeconomic significance. moreover, because these transactions often involve considerable leverage, they need to be monitored by those responsible for fostering financial stability. there appears, at the moment, to be little concern about corporate financial imbalances. debt - to - equity ratios are well within historical ranges, and the recent prolonged period of low long - term interest rates has enabled corporations to fund short - term liabilities and stretch out bond maturities. even the relatively narrow spreads on below - investment - grade corporate debt appear to reflect low expected losses rather than an especially small aversion to risk. the resolution of our current account deficit and household debt burdens does not strike me as overly worrisome, but that is certainly not the case for our yawning fiscal deficit. our fiscal prospects are, in my judgment, a significant obstacle to long - term stability because the budget deficit is not readily subject to correction by market forces that stabilize other imbalances. one issue that concerns most analysts, especially in the context of a widening structural federal deficit, is inadequate national saving. fortunately, our meager domestic savings, and those attracted from abroad, are being very effectively invested in domestic capital assets. the efficiency of our capital stock thus has been an important offset to what, by any standard, has been an exceptionally low domestic saving rate in the united states. although saving is a necessary condition for financing the capital investment required to engender productivity, it is not a sufficient condition. the very high saving rates of the soviet union, of china, and of india in earlier decades, often did not foster significant productivity growth in those countries. saving squandered in financing inefficient technologies does not advance living standards. it is thus difficult to judge how significant a problem our relatively low gross domestic saving rate is to the future growth of an

like stora enso wants long - term financing for a new paper machine, which it might not be possible to sell in a couple of years'time should the company be forced out of the investment. the company's issues of shares and / or bonds provide this long - term investment, partly because the securities can be sold on a market without having to be redeemed by the company issuing them. another important task for the financial system is to reduce risks for both savers and investors. the fact that some companies can involve greater risk than others can be balanced in a well - differentiated financial market by savers spreading their savings across different forms, buying different shares, bonds, shares in mutual funds that in themselves represent a risk spread, and by depositing some in banks. a company that takes on debt in order to make profits in future through sales on foreign markets can protect itself against exchange rate fluctuations by signing futures contracts, which state when and at what prices future income will be converted to kronor. the company can also buy input goods, such as oil, and sell, for instance, pulp at a forward rate, so that the company knows for certain what its future costs and income will be. it costs to do this, but the company then faces no risks. it is quite simply a form of insurance. when it comes to smaller companies and individual households, the securities market is hardly a suitable alternative. the risks for operators on the capital market are difficult to assess and the costs of the transactions have to be spread out over large amounts. instead, banks and insurance companies supply services to small companies and households. the banks act as intermediaries, who receive deposits that are liquid and convert them into long - term lending, so that savers'requirements can be reconciled with the needs of the investing company. the mediation of payments is perhaps the most difficult to understand function of the financial market. but bear in mind that less than 10 per cent of all payments in sweden are made with banknotes and coins. the remainder are through giro payments in various systems for small, mass transactions and large payments between banks and companies. if we were forced to use banknotes and coins, it would require a huge transport apparatus and considerable productive time to implement payments. new technology in this field is being developed all the time. just consider charge cards and e - money, where payments is through book - keeping in different accounts, without any physical money being in circulation. millions of transactions of this

lars nyberg : in the wake of the financial crisis speech by mr lars nyberg, deputy governor of sveriges riksbank, at the hq bank, stockholm, 18 november 2009. * * * i would like to start by expressing my gratitude for having been invited to discuss a few of my thoughts about what may follow in the wake of the financial crisis. make no mistake, the crisis is not behind us yet. many balance sheets in many countries must be adjusted before the world ’ s banking system can be given a clean bill of health. but the acute phase is hopefully over, giving us reason to reflect not just over why developments took the turn that they did – many others have already written volumes about this – but also over what should be done to prevent these mistakes from being repeated. much of this discussion deals with regulation and supervision and, just like after every crisis, many political initiatives are being proposed, some better than others. this is what i intend to talk about today. but there is also reason to reflect over the interplay between financial stability and monetary policy. the current crisis has indisputably demonstrated that monetary policy and financial stability overlap in many important ways that we in the central banks previously may not have entirely considered. i intend to devote the main part of my speech to this issue. bubbles and dangerous imbalances rising asset prices are currently the subject of intense discussion – in sweden, because house prices have started to rise again in the middle of a recession, internationally because prices of financial assets in many newly industrialised countries in asia and south america are rising far more rapidly than expected. is this a problem? have bubbles already arisen on the asset markets? and, if so, what should we do about it? now, to start with, remember that asset prices can rise, and rise quite far, without necessarily becoming what is known as a bubble. even if these assets become overvalued for a period of time, reality usually catches up eventually and prices are adjusted without there being any serious macroeconomic effects. 1 a bubble is something else. a bubble always includes an element of speculation, based on a belief that this development will continue and provide continuously increasing prices. this belief leads to increasing investments and, consequently, further price increases. of course, the term bubble also suggests the image of something that will eventually burst, be it with a loud bang or with a quieter one. financial bubbles are normally built up during good times when growth is high,

financial technology the european commission has already launched a public consultation aiming at update and amendments of the settlement finality directive1. in addition, review of other basic legal acts related to payments as the payment services directive2 and the electronic money directive3 is expected to start by the end of 2021. i wish interesting and fruitful work to the participants in the video conference. directive 98 / 26 / ec of the european parliament and of the council of 19 may 1998 on settlement finality in payment and securities settlement systems 2 directive ( eu ) 2015 / 2366 of the european parliament and of the council of 25 november 2015 on payment services in the internal market, amending directives 2002 / 65 / ec, 2009 / 110 / ec and 2013 / 36 / eu and regulation ( eu ) no 1093 / 2010, and repealing directive 2007 / 64 / ec 3 directive 2009 / 110 / еc of the european parliament and of the council of 16 september 2009 on the taking up, pursuit and prudential supervision of the business of electronic money institutions amending directives 2005 / 60 / ec and 2006 / 48 / ec and repealing directive 2000 / 46 / ec 2 / 2 bis central bankers'speeches

but which in fact cannot truly absorb losses in a going concern – should become more or less a thing of the past. the bank of england would like it to be completely consigned to the past. only equity can absorb losses. for that reason, in calculating regulatory capital, deductions from capital should really be from equity. as part of the emerging compromise, there will be some derogations from that, but the derogations should be transparent. markets should learn to evaluate bank ’ s capital adequacy on the basis of what is made transparent about the makeup of that capital. the other really key change will come in stages – partly in the package this autumn and partly during next year and beyond – which is reducing the pernicious regulatory arbitrage that has existed between “ banking book ” capital requirements and “ trading book ” capital requirements. far too many instruments that were held in the trading book were subject to low capital requirements but actually could not be traded, leaving values exposed to big swings in liquidity premia. this was a fatal design flaw in the existing regime, and it is one which i hope should be fixed over the next year or so though the basel committee ’ s “ fundamental review of the trading book ”. 4. too big to fail at the centre of the reform effort in the fsb work is “ too big to fail. ” if one of the largest firms in the world got into trouble right now, in almost every country in the world we would not be able to cope with its demise other than through fiscal support. this is completely unacceptable. if there is one thing that i think unites the members of the g20 – at the political level and at the official level – it is that this will be consigned to the past. we will re - introduce market discipline back into the financial system, which really means re - introducing capitalism back into the heart of capitalism. the acid test has to be whether, for every financial institution in the world, it could be resolved if it faces distress in a way that does not disrupt the flow of essential financial services to the economy and without state solvency support. that is the single goal in this area. when achieved, it can transform the global financial system more than anything else. it ’ s not for me to set out the ideas today ( svein will do so later ), but there are ideas developing that i believe will, in at least some key centres, become concrete policies

short - term policy interest rate : minus 0. 1 percent target level of the long - term interest rate : around zero percent 0. 0 - 0. 2 - 0. 4 - 0. 6 0 1 2 3 4 5 6 7 8 9 10 15 20 residual maturity, year source : bloomberg. stance of monetary policy conduct and forward guidance ( stance of monetary policy conduct ) in a situation where downside risks to economic activity and prices, mainly regarding developments in overseas economies, are significant, the bank will not hesitate to take additional easing measures if there is a greater possibility that the momentum toward achieving the price stability target will be lost. ( forward guidance for the policy rates ) as for the policy rates, the bank expects shortand long - term interest rates to remain at their present or lower levels as long as it is necessary to pay close attention to the possibility that the momentum toward achieving the price stability target will be lost. 12■

facilitate the collection and dissemination of information. in trinidad and tobago, however, our data compilation system is still largely based on manual forms when web - based forms would improve the speed of data collection and dissemination. we also need to change the culture towards the provision of statistical information. it needs to start with government agencies and state enterprises that tend to see the compilation of records in a way that facilitates analysis, as a bother. the private sector also needs to recognize that there is value in providing data even if it may imply a slight inconvenience. the private sector should be assured that accepted statistical standards require that data on individual firms are not published individually in order to protect confidentiality. the launch by cmmb of a composite leading indicator ( cmmb cli ) is an important development, in that it provides a flash estimate of current economic trends. the indicator should be easily understood as it is based on a set of readily available series. the indicator could, in principle, be very useful for analysts, investors and businessmen alike, and would give an additional piece of information to the central bank on which to base monetary policy decisions. that cmmb, as a private sector institution, has moved to fill this important need ; this is a positive development. it underscores the fact that the business of developing statistical information is not only for the cso or the central bank but is a responsibility of all economic stakeholders. i call on trade associations and industry groups to follow the example. let me again congratulate cmmb on this worthwhile initiative. you have established a new standard among private financial institutions in terms of the provision of timely and relevant information for decision making. additional efforts like these would go a long way to strengthening the country ’ s statistical infrastructure.

could be said that we are looking for a new stability. cavour ’ s mastery at using the ties and influences he had to take into account to the country ’ s advantage is striking to everyone, not just historians ; and not only international ties and influences, which were extremely important for a leader of a second - tier european power, but also ones inside the diverse risorgimento movement. in fact, he also had difficult relations with italian democrats, who were supporters of the republic and of universal suffrage, distrustful and hostile towards him, and above all enjoyed more public support than him, but with whom he could not do without. he was able to make precise calculations, conscious of how important their support was, and struck essential compromises, while, for all intents and purposes, holding onto control of the political initiative. the necessity of a non - provincial culture for this strategy to be successful, it needed to be supported by a non - provincial culture. his was a european one, to an extent that was extremely uncommon for an italian politician of his day. this was also for family reasons : it is well known his mother was originally from geneva and, during his formative years, cavour would look beyond the alps, particularly at the political unrest 1 / 3 bis central bankers'speeches in france under louis philippe i and at british industry. through cavour ’ s actions, europe found an important channel for influencing the culture of the ruling class in piedmont under the savoy and then of unified italy. political progress is never separate from economic progress for cavour, progress in europe meant progress with the liberal agenda, in terms of both politics and economics. thus “ the political regeneration of a nation is never separate from its economic regeneration. when a people governed by a benevolent prince progresses in the way of civility, it must of necessity progress in wealth and material power. the conditions for the two kinds of progress are identical. ” ( cavour, influenza delle riforme sulle condizioni economiche dell ’ italia, risorgimento, 15 december 1847 ). from a more specifically political perspective, the freedoms of individuals and national unity were considered binding for liberals of cavour ’ s ilk ; it is from this that we get, among other things, the phrase “ civium libertati patriae unitati ” ( freedom of the citizens, unity of the land ), which was inscribed 50 years after unification at the

are offering five de la rue scholarships beyond economics to finance and actuarial science, areas in which we are building skills. from 2015, we will offer three de la rue scholarships. since 2007, we have spearheaded the national financial literacy program ( nflp ) to equip our citizens with the knowledge, skills and tools to make informed financial decisions. we are now transforming the nflp into an accredited training agency. one of the programmes of this new training agency will be a certificate in central banking that will provide our entry level staff with broad - based knowledge and understanding of monetary policy, financial supervision and reserve management. i firmly believe that ibf has a key role to play in helping to build our financial ecosystem in which finance professionals keep pace with skills challenges to the future. i am pleased to hear about ibf ’ s future initiatives for training in banking and finance, including online learning. but there is always more to be done. for instance, ibf can establish a set of industry standards for finance professionals that provide a clear road map for building their competencies, as they progress in their careers, across different jobs. such financial industry competency standards will also help to build a clear pipeline of talent and leaders in finance, so that our citizens can take advantage of the opportunities that a growing financial industry will create. ibf can also help to develop trinidadians for positions of leadership in tomorrow ’ s financial world. many of our industry pioneers and senior professionals have a wealth of experience to share. every year ibf bestows fellowship awards to stalwarts who ’ ve contributed to building the financial services industry. among those being awarded tonight are mr. carl hiralal who is the central bank ’ s current inspector of financial institutions, ms. suzanne roach, our current financial services ombudsman, and mr. wendell mottley a former minister of finance and current chairman of the unit trust corporation. the introduction of a wellstructured ibaf future leaders scheme can help to transfer knowledge from these current bis central bankers ’ speeches leaders to future leaders such as the graduating class tonight. such an ibf future leaders scheme would complement the succession planning schemes in individual financial institutions. clearly as trinidad and tobago emerged as the regional financial centre and has aspirations to become an international financial centre you, the graduating class of 2014, will perhaps have many opportunities, which will require you to continuously engage in lifelong learning. as the financial crisis of the last six years has taught us, there are no

their formation mechanism ; ( 2 ) reasons for low expectations in japan ; ( 3 ) the relationship with japan's financial crisis ; and ( 4 ) the relationship with labor market reform. ii. issues regarding long - term inflation expectations a. formation mechanism in economics theory, long - term inflation expectations are irrelevant to the potential growth rate. however, i doubt that this holds true in reality, in light of what is happening in japan. rather, i think that long - term inflation expectations and the potential growth rate do have a correlation, although it may not be strong ( chart 3 ). long - term inflation expectations declined sharply in japan, before and after the financial crisis in the late 1990s. economic fundamentals already had been weak before the crisis because of the negative interaction between demand and supply conditions ; specifically, a negative financial accelerator on the demand side due to the dire asset price deflation, and ( 2 ) the impairment of the financial intermediary function, as well as the distortion of economic resource allocation caused by the bubble economy on the supply side. the financial crisis triggered further weakening of economic fundamentals ( chart 4 ). in this situation, pessimism about the future led to a decline in people's expectations for mediumto long - term growth, and the potential growth rate remained low over a long period of time. as a result, people's perception of prices became excessively conservative. in other words, long - term inflation expectations turned downward. b. reasons for low expectations in japan next, let us take a look at developments in survey - based measures of expected long - term inflation in japan. a survey - based rate marked a sharp decline during the period of the financial crisis in the late 1990s, and then leveled out at around 1 percent. since then, even throughout the period of the global financial crisis and the european sovereign debt crisis, it has been more or less unchanged at around 1 percent ( chart 5 ). however, i am somewhat doubtful about this figure. 3 i believe that it is more persuasive to say that long - term inflation expectations in japan have actually declined to around 0 percent, for the following four reasons. 4 first, the frequency of micro - level price changes suggests that the mode value remains zero. in other words, the year - on - year rate of increase in the prices of sample items concentrated on 0 percent. therefore, people are likely to consider that zero inflation is a steady and constant state. it is helpful to

##ties. the most significant risk is, of course, the impact of the european sovereign debt crisis on our economy through its effects on international financial markets and the global economy. although the economic outlook is important, i have already discussed it on various occasions. today, instead, i would like to give my thoughts on the challenges facing japan ’ s economy and its central bank from a medium - to long - term perspective, as i believe the end of the year is good timing for doing so. i. japan ’ s economy during the past 15 years progress in globalization in order to understand the medium - to long - term challenges that lie ahead for japan ’ s economy, i will first compare how it is today to how it was back in 1995. i have chosen that particular year as a comparison point because of its similarities with this year, as in 1995 bis central bankers ’ speeches japan experienced the great hanshin - awaji earthquake ( or kobe earthquake as it is also known ) and an appreciation of the yen, which peaked that year at under 80 yen against the u. s. dollar. there have been many changes over the past 15 years. first, we saw further globalization of goods, capital, and people ( chart 2 ). for goods, global trade volume in real terms after excluding the effects of price fluctuations is expected to rise from an index level of 100 in 1995 to 253 by 2011. this implies that global trade volume continued to expand at an annualized rate of 6. 0 percent, a pace much faster than the real gdp growth rate of 3. 7 percent during the period. this increase was essentially caused by the end of the cold war and subsequent transition of regions worldwide to market economies. this increased opportunities for an international division of labor, which led to more optimal production by combining the technology and capital of advanced economies with the ample labor forces of emerging economies. emerging economies, particularly china, india, and brazil, grew rapidly in this process ( chart 3 ). for capital, the average amount of daily transactions in foreign exchange markets worldwide was 1. 5 trillion dollars as of 1998 – which is as far back as we can go in making such a comparison – and grew to 4 trillion dollars, corresponding to almost 20 times world gdp per day, in 2010 ( chart 2 ). for people, tourists traveling abroad have increased substantially from 530 million in 1995 to 940 million in 2011. the number of first - generation immigrants has also increased from 170 million in 1995 to 210 million in

, whereby external ledgers – including those for securities – could connect to rtgs to synchronise transactions. this would enable ‘ atomic settlement ’, whereby the transfer of two assets is linked in a way that one asset moves if and only if the other asset also moves. this could modernise for the digital world the dvp concept that was pioneered with the rtgs - crest link, and extend it to a wide range of markets. underpinning all these enhancements is resilience, which is absolutely central to our provision of the rtgs service and will remain so. the new core rtgs settlement engine will already have even more enhanced resilience built in to ensure prompt and secure settlement in a world of new and emerging threats. as part of the future roadmap for rtgs, we are exploring how to enhance resilience further by introducing an additional channel to send and receive payments to rtgs, offering participants greater choice in how they connect to our settlement service. additional channels to rtgs would also help to reduce market reliance on any single third party for payments messaging. overall, we believe that the package of enhancements that we are developing can provide the conditions for innovative new business models to emerge. but this vision can only become a reality if industry players join us on this journey, both through co - creation and effective coordination. co - creation with stakeholders will ensure that we benefit from industry steers on the development of the individual features, as well as the strategic shaping of the rtgs future roadmap. industry input is essential as we continue to shape the future of rtgs to best meet the needs of the uk economy. drawing on our ongoing co - creation work, i would like to highlight our recently published discussion papers on access to rtgs accounts for settlement and exploring longer operating hours for rtgs. while we have not made any decision on whether to move to longer operating hours, an extension could serve as a catalyst for further innovation, help to reduce settlement and credit risk and enhance domestic and cross - border payments. i would encourage everyone with an interest to respond to both papers. finally, our achievements to date have only been possible thanks to industry co - ordination to adopt standards and to invest in necessary technological improvements. as we look ahead to opportunities to enhance and improve settlement practices in the bond market, a similar level of co - ordination and collaboration between industry and the bank will be essential. conclusion the purpose of today ’ s forum is to discuss

s balance sheet. balance sheet expansion through programmes to purchase public and private securities is unquestionably an exceptional measure, but it is not exclusive to the euro area, and has already been adopted by other central banks. between 2010 and 2014 the federal reserve, the bank of england and the bank of japan doubled the size of their balance sheets after running out of room to further reduce interest rates and after having resorted to announcing their commitment to hold official interest rates at very low levels for a sufficient time. the design and implementation of programmes to purchase public and private debt securities must not fail to take into account the institutional characteristics of the area in which they are applied. monetary policy in the united states or in the united kingdom acts in a fiscal union, which makes it easier to resolve potential problems associated with the allocation of any costs incurred by the central bank in its monetary policy operations. in this respect, the unique characteristics of the euro area meant that complex technical adjustments had to be made when designing the announced programme. the monetary expansion measures taken by central banks are unquestionably vital for achieving the objectives in terms of inflation rates and credit flow stimulation and of the financing of the economy. however, sustainably bolstering economic activity and job creation requires the monetary stimuli to be accompanied by measures in other areas. in the european case, the reform drive has to be maintained to ensure the proper functioning of the markets and fiscal policies favouring growth while at the same time meeting the commitments assumed under the stability and growth pact. position in the cycle and monetary policies of the main developed economies to conclude, i would like to refer to the different position in the cycle of the leading developed countries. in the united states, and to a lesser extent in the united kingdom, both of which are at a much more advanced stage of economic recovery than the euro area, the monetary policy debate now centres on when and how rapidly to start withdrawing part of the monetary stimulus, whereas in the euro area and in japan further stimulus measures are being introduced. this difference in cyclical position is affecting prices on the financial markets, and particularly exchange rates. in this respect, the exceptional stimulus measures announced by the ecb and the consequent easing of financial conditions in the currency area, the depreciation of the euro and the sharp drop in oil prices provide a favourable financial backdrop for the euro area and, in particular, for countries like spain that have made a tremendous effort to correct their imbalances. the benefits of the

donald l kohn : economic outlook remarks by mr donald l kohn, vice chairman of the board of governors of the us federal reserve system, at the money marketeers of new york university, new york, new york, 4 october 2006. * * * i am pleased to be with you tonight to discuss my views on current economic conditions and the economic outlook. these have been challenging times for economic forecasters and policymakers. since the summer of 2005, the economy has absorbed a wide variety of shocks - major hurricanes, ongoing geopolitical tensions, and substantial increases in energy prices - and has adapted to a rise in short - term interest rates to more normal levels. yet real gross domestic product ( gdp ) increased a respectable 3 - 1 / 2 percent from the second quarter of 2005 to the second quarter of 2006, and the unemployment rate fell to 4 - 3 / 4 percent. at the same time, however, headline consumer price inflation has been quite high, and an upward movement in core inflation has raised concerns about the persistence in price pressures, a very worrisome development from the point of view of a monetary policy maker. the economic outlook for the next few years will be importantly shaped by ongoing responses to these developments. reflecting those responses, economic activity has slowed noticeably over the course of the year, and inflation, though down from its level earlier this year, remains uncomfortably elevated. however, i expect that the continuing adjustment will be relatively benign overall : the economy will grow at a moderate pace for a while, somewhat below the rate of increase of its potential, and then growth will begin to strengthen. in addition, as the cost pressures from the run - up in energy and materials prices begin to play out, or perhaps even partly reverse, and as pressures on resources ease slightly, i think we will likely see much lower headline inflation and a gradual diminution of core consumer price inflation. i know that to some this story of a soft landing seems too good to be true - the triumph of hope over experience. one question is whether it is even feasible. can inflation pressures decrease with only a modest shortfall of economic growth from potential? and is it possible that a modest decline in resource utilization will not cumulate into something more serious, as it has tended to do in the past at least without a major adjustment of policy? my view is that this economy is capable of generating the type of favorable outcome that i have just sketched, but, as in any period of transition,

on record the sources of information available to the media and the public from the rbi. information on areas relating to the economy, banking and financial sector is released with stringent standards of quality and timeliness. dissemination of information takes place through several channels such as press releases, publications - regular and occasional - notifications, frequently asked questions, advertisements and website. the annual april and october monetary and credit policy statements and speeches and interviews of the top management articulate the rbi ’ s assessment of the economy and the financial system. my presence here today is part of a fruitful and beneficial partnership between rbi and media in the broader context of creating public awareness, and obtaining continuous feedback. the rbi makes efforts to provide quality data to the public at large, which emanates from a robust statistical system established and strengthened over the years. the fundamental attributes of a good statistical system are credibility, timeliness and adequacy. the rbi endeavours to provide credible statistics for dissemination through the media through various ways – with updating of data on its website, daily press releases, and its weekly, monthly, quarterly and annual publications. the communications from rbi range from a daily press release on money market data at about 9. 00 a. m. ; details of repos and reverse repos as part of liquidity adjustment facility at about 12. 30 p. m. ; the u. s. dollar - rupee reference rate at about 2. 00 p. m. ; monetary, banking and prices data through a weekly statistical supplement and the annual report of rbi, report on trend and progress of banking in india and the report on currency and finance. incidentally, you would have already seen the annual report of the rbi for the year july - june 2000 - 01 on the rbi website at 5 pm today followed almost simultaneously by wide coverage by the electronic media. the rbi brings out a number of ad hoc publications, which contain a wealth of useful information on national and international issues. information on various facets of indian economy is disseminated through the rbi publications, such as, handbook of statistics on indian economy, statistical tables relating to banks in india, banking statistics - annual and quarterly. the document relating to macroeconomic and monetary developments issued along with the april monetary and credit policy statement is also an important source of background information. incidentally, rbi is the only recognised source for the information on the consolidated position of state finances. these publications contain valuable information useful to researchers and to the general public at

, but we may hope that this will now be followed by a resumption of investment in equipment, along with increased recruitment. consequently, the overall economic climate in switzerland is likely to continue improving over the next few months, thereby supporting consumption. we project growth of slightly over 2 % for the year as a whole. this return to growth does not constitute a threat to price stability. our forecasts indicat that average inflation for this year is likely to be about 1 %, and the outlook remains just as favourable for 2007. compared with other countries, switzerland will continue to enjoy a privileged position in this respect. what may we expect from monetary policy? the inflation forecast we published in march clearly indicates that the current interest rate level is incompatible with long - term price stability. consequently, we will continue to implement the strategy of monetary normalisation pursued since june 2004. we will be doing so in the conviction that a preventive approach is much less painful for our economy than belated corrective measures. while the resumption of growth is heartening, we should not rest on our laurels since the expected figures are still lower than those needed to cope with the increasing financial requirements of our aging population. much still needs to be done to raise potential growth in our economy. the proposals on liberalisation of the domestic market that have been put to the federal parliament by the federal council are a step in the right direction. additional reforms should be planned, with the objective of stimulating internal competition and reducing the level of market regulation. it is certainly worrying to see our country's frequent low ranking in terms of the indicators that measure market liberalisation. the vitality of countries that have created more room for private initiative should serve as an inspiration to us. given the healthy state of our economy, the timing is excellent for pursuing a programme of economic reform. we would be making a grave mistake if we declared ourselves content with the results we have already achieved. by ensuring price stability, the snb, for its part, creates an environment that favours both general economic expansion and structural adjustment. stable financial markets 2005 was a year of great uncertainties, with the surge in oil prices, disruptions to refining capacity in the united states, and geopolitical tensions. what is more, the world economy is still characterised by profound imbalances, such as the deficit in us external accounts and the lack of flexibility in the chinese monetary system. turning now to monetary policy, there were often considerable dispar

responsive to changes in economic conditions. 17 in conjunction with the forward guidance on the policy rate, the commitment to continue asset purchases at least at the current pace over coming months is also helping to achieve our goals by keeping borrowing costs low for households and businesses along the yield curve. as noted in the september fomc minutes, in the months ahead, we will have the opportunity to deliberate and to clarify how the asset purchase program could best work in combination with forward guidance to support achievement of maximum employment and 2 percent average inflation. while the strong bounceback in activity from the initial devastation of covid - 19 was heartening, the recovery thus far has been highly uneven, and the path ahead is highly uncertain. by pledging to provide accommodation until shortfalls from maximum employment have been eliminated and average inflation of 2 percent has been achieved, the new forward guidance will ensure that the recovery reaches those who have been disproportionately affected, leading to a broad - based and strong recovery. continued asset purchases will help achieve these outcomes by keeping borrowing costs low for households and businesses along the yield curve. this strong support from monetary staff analysis conducted during the framework review indicates that date - based guidance may not give the committee sufficient scope to respond to incoming data, and the strategy could lose credibility if the dates are revised frequently. date - based guidance may also run a greater risk than outcome - based guidance of inadvertently signaling a pessimistic outlook. for further discussion, see jeffrey campbell, thomas b. king, anna orlik, and rebecca zarutskie ( 2020 ), “ issues regarding the use of the policy rate tool, ” finance and economics discussion series 2020 - 070 ( washington : board of governors of the federal reserve system, august ), https : / / doi. org / 10. 17016 / feds. 2020. 070. - 14 policy — if combined with additional targeted fiscal support — can turn a k - shaped recovery into a broad - based and inclusive recovery that delivers better outcomes overall.

order to see the big picture. this is rather like central bankers and supervisors analysing financial stability as a whole rather than individual institutions. action was needed from a macroprudential perspective, and germany activated the countercyclical capital buffer for the first time in july. this ensures banks build up additional reserves when times are good and thus boosts their resilience to periods of stress. when times are bad, supervisors can lower the buffer again so that banks can then use this leeway to cover their losses. in other words, the countercyclical capital buffer has a stabilising effect and helps the banking sector to better absorb shocks. 5 green finance ladies and gentlemen, risks, interactions and keeping sight of the big picture are critical factors when it comes to another topic, too : climate change. when alexander von humboldt witnessed the environmental damage caused by plantations on his travels in venezuela, he was able to join the dots and warned of the human impact on the environment and its consequences for future generations. in particular, he noted the important role played by the forest in cooling the air, storing water and protecting against soil erosion. climate change is a challenge that we all face. christine lagarde, president of the ecb, has said that all public and private institutions should act, within their mandates, to address it. the first “ gruner pfandbrief ” was issued back in 2015, even before the paris agreement was signed. without wanting to flatter, it is now safe to say that this product innovation, which was designed to finance energy - [UNK] buildings, was a little ahead of its time. https : / / www. bundesbank. de / en / press / speeches / consistency - as - a - mandate - 816296 5 / 9 11 / 29 / 2019 consistency as a mandate | deutsche bundesbank the green bond market as a whole can make a substantial contribution to financing environmentally friendly projects. in germany, sustainable investment has risen by over 70 % in the past four years. what is more, strong market growth can be observed globally as well. [ 15 ] and yet the role played by green finance remains fairly small. green bonds account for only just 2 % of the international market as a whole. in other words, green finance probably still has considerable potential. a key requirement here is a clear, generally accepted definition of what “ green ”

the cost structure of skill - based services. • it is now feasible to “ unbundle ” production of different types of goods and services. india does not necessarily have to be a low - cost producer of certain types of goods ( e. g., computers or discs ) before it can become an efficient supplier of services embodied in them ( e. g., software or music ). at the same time, it must be recognised that the “ death of distance ” and the growing integration of global product, services and financial markets in recent years have also presented new challenges for management of the national economy – not only in india but all over the world. the trend towards integration of markets, particularly financial markets, is by no means an unmixed blessing. unlike the old days, a heavy price may have to be paid by national economies for somnolence, sloth and non - conformity to generally accepted international norms and standards of macro - economic management, disclosure, transparency and financial accountability. another consequence of recent global trends is the greater vulnerability of national economies to developments outside their own borders. a crisis in any one or a group of countries, can be transmitted to other countries – including countries which may not have any strong economic linkages with crisis - affected countries. thus, the ’ nineties have been marked by a large number of currency crises ( for example, in mexico, russia, east asia and brazil – and currently argentina and turkey ) ; substantial swings in exchange rates ( including the exchange rate of three leading currencies – the dollar, the euro and the yen ) ; and run ups in asset prices followed by sharp collapse ( for example in japan and east asia earlier and the united states last year ). while the crises initially occur in one or two specific countries, their adverse effects are felt across the world. while we must be careful, on the whole, in my view, – the death of distance, the services revolution, and the mobility of capital – which characterise globalisation – present unprecedented opportunities for india. the primary source of comparative advantages today are : skills and ability to adapt and change. and, india has the advantage – of skills, of entrepreneurship and of managerial competence in taking advantage of these changes. if what i have said is correct, then, why are we not jumping with joy and optimism? why are we so “ unglobalised ” in terms of our share in trade, investment or communication? transition from a closed to a

team spirit. the governing council, the executive board, the ecb staff and all the national central banks have proven their solidarity and unity under exceptionally difficult circumstances. it is because of this that we have been able, since the beginning of the period of financial turmoil, to make a prognosis which has turned out to be right and to take the appropriate decisions for the challenges we have faced. we took those decisions very quickly because we had to, without ever losing our course : that is to say price stability in the medium term, which is our primary goal. i believe that it is the ability of the governing council to strictly maintain its medium and long - term price stability strategy, whilst taking quick and, where necessary, unconventional decisions, which best summarises our management of the crisis. but we cannot afford to be complacent. we are still in a difficult situation which means we must always be on our guard. i have been in such situations myself many times, and it is very important to strictly maintain a long - term strategy at the same time as managing a crisis. for example, in my country in 1992 and 1993, as secretary of the treasury and governor of the banque de france, i had to pursue a long - term strategy of competitive disinflation at the same time as being faced with monetary crises in the european exchange rate mechanism. also, as president of the club de paris in the 80 ’ s and early 90 ’ s, we pursued a strategy of long - term debt whilst managing financial crises in the sovereign countries of latin america and africa, in particular. at the moment, my colleagues and i believe that one of the most important goals is to be an anchor of stability and confidence for our 330 million citizens in what is an extremely difficult period.

merkel : you have stood beside us unfailingly in the european council and in global forums, at a time when other major central banks have faced increasingly vocal political pressure. you have pushed back strongly against illiberal voices that would see us turn our back on european integration. and, at critical moments, you have taken the steps needed to safeguard the euro and protect the heritage that was left to us : a united, peaceful and prosperous europe. the time has come for me to hand over to christine lagarde. i have every confidence that you will be a superb leader of the ecb. my goal has always been to comply with the mandate enshrined in the treaty, pursued in total independence, and carried out through an institution that has developed into a modern central bank capable of managing any challenge. it has been a privilege and an honour to have the opportunity to do so. thank you. 1 see speech by mario draghi entitled “ europe and the euro 20 years on ” on accepting the laurea honoris causa in economics from the university of sant ’ anna, pisa, 15 december 2018. 2 see speech by mario draghi entitled “ twenty years of the ecb ’ s monetary policy ” at the ecb forum on central banking, sintra, 18 june 2019. 4 / 5 bis central bankers'speeches 3 speech by mario draghi entitled “ policymaking, responsibility and uncertainty ” on accepting the laurea honoris causa from the universita cattolica, 11 october 2019. 4 see speech by mario draghi entitled “ unemployment in the euro area ” at the annual central bank symposium in jackson hole, 22 august 2014. 5 average cyclically adjusted primary balance as a percentage of potential gdp. 6 see speech by mario draghi entitled “ sovereignty in a globalised world ”, on accepting the laurea honoris causa in law from universita degli studi di bologna, bologna, 22 february 2019. 7 speech by chancellor angela merkel to the european parliament, strasbourg, 13 november 2018. 8 speech by president emmanuel macron to the european parliament, strasbourg, 17 april 2018. 5 / 5 bis central bankers'speeches