As a rule, these estimates coincide. Norges Bank places considerable emphasis on the transparency and communication of monetary policy. Norges Bank’s analyses and the background for the Bank’s interest rate decisions are published regularly. The inflation outlook is presented three times a year in Norges Bank’s Inflation Report. Further assessments are presented every six weeks in connection with the Executive Board's monetary policy meetings. The Bank also reports on the implementation of monetary policy in its annual report. If there are significant deviations between actual price inflation and the target, the Bank will provide a thorough assessment in its annual report. Particular emphasis will be placed on any deviations outside the interval +/- 1 percentage point. Transparency about the intentions, strategies and implementation of monetary policy make it easier for economic agents to evaluate monetary policy. If monetary policy is predictable, an important source of uncertainty is reduced and the interest rate that is necessary to achieve the inflation target - all other thing being equal - is lower. A predictable monetary policy can thereby contribute to enhancing the efficiency and impact of monetary policy. Even though there is not necessarily a one-to-one relationship between transparency and predictability, some degree of transparency is probably a precondition for achieving monetary policy credibility. BIS Review 74/2001  9  In Norway at least it appears that transparency in Norges Bank's interpretation of the mandate and in the implementation of monetary policy has contributed to a somewhat more predictable monetary policy.

Despite this contraction in number, the remaining firms have continued to grow and thrive, and now have assets totaling $ billion, which is an increase of about 30 percent. Community banks are much stronger financially today. In 2009, troubled assets were 26 percent of capital, primarily reflecting a large volume of construction lending. That ratio has declined significantly, to 8.5 percent today— demonstrating that community bank leaders have the capacity to take action, effectively work out troubled assets, and generate capital. These data tell a welcome story regarding your ability to successfully conduct business through the economic recovery. So, where does the industry go from here and what challenges lie ahead? That is the theme of today’s conference, and I expect a robust and enlightening series of discussions from both panelists and presenters. From my perspective, there are two challenges that I would highlight: ongoing advances in technology, and interest rate risk. First, major technological changes are compelling banks to embrace technology to better meet the needs of their customers. Today’s customer expects increased digital access, and a bank’s failure to advance technologically would be very damaging for its franchise value. But, the use of new technology comes with its own risks that require significant investment and attention— especially around cybersecurity. Second, in today’s low interest rate environment, we have observed that some community banks have taken on more interest rate risk by increasing the maturity of their assets and the average duration of their loan portfolios.