In 2002, the Central Bank put forward proposals for the development of the securities settlement system which is operated on the basis of an agreement between the Central Bank, Central Securities Depository and Iceland Stock Exchange. Proposals included clarification of rules for the system’s operations, introduction of risk management, and expediting of payment orders from the Depository to the Central Bank and netting of them, so that credit institutions can be notified of their securities trading positions in order to prepare settlements which are made the following morning. Following amendments made to the Public Limited Companies Act in 2002, requests were made for securities settlements to be allowed in foreign currencies. The Central Bank has participated in examining the possibilities of developing a settlement system for securities in foreign currencies, in collaboration with the Central Securities Depository, Iceland Stock Exchange and the commercial banks. Such a system would clearly pose new settlement risks. It would presumably be an option in this respect to establish a system which would be entirely operated by Icelandic commercial banks. In all the work described here, the Central Bank has had a very good collaboration with financial institutions and other parties involved, and I would like to express my thanks for the close cooperation and good understanding that has been achieved among all the parties to this work. A number of important changes have occurred since the Central Bank published its last macroeconomic forecast in February.

Given the lessons learned from the crisis and the evolving financial innovations, in the last decade central banks have played an increasing role in the coordinated activities of the national policymakers tilted 2/3  BIS central bankers' speeches  towards financial education and inclusion. Hence, central banks are active participants and promoters of the financial education process in almost all countries. The benefits are apparent: educated entities estimate risks and understand monetary policy stance better, the better the understanding of the economy and finances, the smoother the functioning of financial markets; the more efficient financial markets; the stronger monetary policy transmission and the credibility of the central bank. In this context, let me briefly touch upon several activities our institution has embarked on in this area. Financial education and financial inclusion have formally become part of our agenda. We have widened the scope of educational activities, by wider portfolio of educational articles, more inclusive approach to financial education and closer cooperation with other regulators. The National Bank supported the organization of the European Money Quiz for teenagers with educational activities for the teaching staff, and has been proud of our high school students who won the second place in Europe. Very importantly, there is an ongoing process of preparation of the National Strategy for Financial Education and Inclusion, which we believe will pave the way for more educated and more inclusive society. Dear guests, This workshop proves that apart from national initiatives to elevate and promote financial knowledge, regional initiatives are on board as well.