In this way, the guidelines reconcile the need for a flexible approach  6  BIS central bankers’ speeches  to macroeconomic management with the gains brought by a commitment to more long-term operational objectives. Lessons from the financial crisis Even though Norway has fared well through the financial crisis, helped by a sound economic policy framework, some concerns related to financial stability remain. In particular, there is one area in which Norway differs from other countries in a manner we perhaps do not like: Norwegian households are among the most heavily indebted in Europe. As activity in the Norwegian economy is gathering momentum, pressures are mounting in the housing market. Consumer confidence has improved and house prices have risen in recent months. Housing starts are moving up, although from moderate levels. BIS central bankers’ speeches  7  So far, the low interest rate level has not led to a pronounced increase in household borrowing. However, the household debt burden is at a historically high level and is expected to increase further. Rising debt and property prices are mutually reinforcing phenomena. Higher asset prices lead to higher collateral values for loans and increased borrowing opportunities for buyers. This increases the overall risk of the financial system. While monetary policy and fiscal policy have been anchored within a long-term, operational framework over the past ten years, there has been no coherent regulatory system for financial markets. Requirements are currently imposed on individual banks, but without adequate regard to overall risk in the financial system.

Bucharest, April 29th 2020  Mugur Isărescu, Governor of the National Bank of Romania Dear colleagues,  Early this year, we found ourselves during challenging times, under an awful threat of medical nature, which has affected our lives, as well as the global economy. Many sectors have experienced sudden stops. The negative effects of COVID-19 pandemic have required the adoption of comprehensive and coordinated packages of measures in order to respond to lockdowns and deterioration of economies, trying at the same time to establish grounds for future opening up and strategies for restarting the activities. Recent history has shown us that central banks have always exerted their full functions within mandate to support countries and people to overcome the economic effects of wars, catastrophes and disasters of any kind. These trying times make no exception. The outstanding cooperation within the framework of the prestigious Bank for International Settlements, of its remarkable members and management, will stand proof for deepening our commitments that bind us all. On a more positive note, I wish to let you know that the National Bank of Romania celebrates today its 140 year anniversary. The day of April 29th has a strong historical significance. Since mid19th century, the Romanian society had witnessed swift, in-depth social, economic, political and institutional changes. So, steps were taken to found a central bank, drawn on the statutory principles of Banque de France and the National Bank of Belgium. On April 29th 1880, the Law on the establishment of a discount and circulation bank, i.e.