financial institutions and securities markets can be complementary and prevent a credit crunch. one example is the crisis that followed the collapse of the us hedge fund ltcm in 1998. for a period during the crisis, there were substantial problems in the private bond market in the us. financial institutions increased lending and prevented a more extensive credit crunch. conversely, we have seen that when there have been problems in the banking sector, securities markets have replaced bank loans. changes are now taking place, which i think will contribute to strengthening the norwegian bond market. proposed legislation changes will for example provide for the sale of housing loans to a separate entity that finances the purchase by issuing bonds. the proposed legislative amendments would permit a wider range of issues in the bond market. in general, a larger number of issuers and investors would enhance liquidity in the secondary bond market. this could also directly or indirectly strengthen banks ’ position. funding of pensions the savings market in various countries 31. 12. 2000. as a share of gdp 2. 5 pension funds securities funds life insurance 1. 5 0. 5 um mark land ance many eland italy lands rw ay tugal spain eden rland lgi r fr ger ir fin sw itze no por be den the sw ne uk source : oecd sg kommunalbanken, 30. august 2002 the organisation of the pension system in norway will also be of considerable importance to the local government sector as a big employer. the securities market will also be influenced by the pension system norway will have in the future. life insurance companies and pension funds are major operators in the norwegian securities market. • design of a new pension system : - " pay - as - you - go " - fund - based schemes : – defined contribution – defined benefit • who should bear the risk? sg kommunalbanken, 30. august 2002 in norway, the bulk of pensions are funded through the pay - as - you - go system. it is the taxation of current income that pays for the national insurance scheme ’ s current pension benefits. for the vast majority of western countries, estimates show that substantial tax increases will be needed to cope with the ageing of the population. the alternative to the pay - as - you - go system is to build up funds prior to the payment of pensions. these funds can consist of different assets such as stocks and bonds. more fund - based schemes will generate a positive stimulus to the norwegian securities market, even if an appropriate

of ubiquity in the sense access to payment systems should be simple, easy, convenient, cost effective for the “ aam admi ”. third indian payment systems need to continuously innovate products, channels and business models. technology should facilitate the convergence of payment products. fourth recent surveys worldwide indicate mobile and nfc are the future payment trends. given the huge potential for both mobile and nfc as the future payment products, we should see the adoption and integration of these into our payment systems. fifth, our payment systems should be able to provide a low cost solution to bring government payments, e - commerce, etc, into its fold. sixth, safety and security of payment systems instil public confidence. our payment systems should meet the emerging challenge of frauds and be the trend setter for security i once again felicitate the csb ltd on this momentous day. thank you. bis central bankers ’ speeches