On the contrary, we are very much in favour of growth. First and foremost, because the objective of monetary policy - price stability - is paving the way for medium and for long-term, sustainable robust growth. This is the strong belief of the Europeans. I see three main channels through which price stability is fostering growth. First, preserving and reinforcing the competitiveness of the productive sector through low inflation and therefore low unit production costs. Second, reinforcing the trust of savers  6  BIS Review 28/2001  in that monetary and financial instruments will preserve their value in the medium and long run therefore permitting low medium and long term market interest rates. And, last but not least, fostering growth of domestic demand by preserving the purchasing power of households through low inflation. –  This last contribution to growth is particularly important presently in the Eurozone. In reinforcing confidence of the European people in the ability of the Eurosystem to deliver price stability and low inflation we are improving the overall confidence of the consumers and therefore the level of consumer demand. Not only are we aiming at sustainable non-inflationary steady growth through our action but also via all our recommendations: we are calling for implementing resolutely anti-Malthusian policies in all fields of the economy, that is we support innovation, liberalisation and growth incentives. We are anti-Malthusian as regards scientific and technical progress.

We anticipate a financial institution's policy to cover all necessary areas pertaining to IT activities including contingency plan, security, and out/in-sourcing. In addition, the policy should cover new product issuance such as internet banking and e-money. The process of formulating, implementing and maintaining of such policies should be considered. A continuous risk assessment and monitoring should also be part of an area of examination. Management support and oversight It is ultimately a responsibility of a financial institution's board and management to extend governance to IT and provide the leadership, organizational structures and processes to direct and control the enterprise. Management must monitor to ensure that IT resources are properly managed to promote business objectives. 4  BIS Review 35/2005  IT governance During the last few years, financial institutions have increasingly invested in technology infrastructure to improve their internal processes and servicing capabilities. Investment in technology infrastructure normally involves huge amount of funds and other resources. Technology also carries risks, which can adversely affect financial institutions if not properly managed. Financial institutions need to understand the strategic importance of IT, manage IT to effectively deliver value to business, and mitigate risks arisen from the use of IT. IT governance focuses on how financial institutions make the best use of their invested technologies. It is a high-level IT control framework related to the formulation of IT strategies, the management of IT processes to deliver value, the performance measurement, and the management of IT-related risks.