salvatore rossi : banks and insurance companies – a common path for growth speech by mr salvatore rossi, senior deputy governor of the bank of italy and president of the insurance supervisory authority ( ivass ), at 46th day of credit, rome, 1 october 2014. * * * the evolution of the world financial system the international debate on financial systems features an apparent paradox : throughout the world there are complaints about the lack of financial support, especially bank credit, for infrastructure and for small and medium - sized enterprises ; at the same time there is alarm about the heightened commitment of entities other than banks to financing the real economy. the alarm stems from the fact that, compared with banks, many of these entities are subject to less regulation and supervision or none at all. the two concerns arise in different contexts and for different reasons, but they are often found together in the international fora in which the conditions of the global economy are discussed ; this gives the impression of conflicting objectives. the impression is false, but it is important to spotlight the way in which the two lines of analysis can be reconciled in a single, harmonious economic policy prescription. the latest meeting of g20 finance ministers and central bank governors ten days ago in cairns, australia, provides a good example of the joint presence of these two apparently conflicting concerns. the final cairns communique clearly expresses the unanimous belief among the twenty countries, which produce more than 80 per cent of world gdp, that in the present phase the critical variable for stimulating demand and increasing economic growth is investment : investment in infrastructure, in public - private partnership ; and investment by firms and especially smes. if there are difficulties, as there may be, in financing the desired additional expenditure via the markets and traditional intermediaries, it will be necessary – the world ’ s leaders maintain – to promote other financial channels, such as a transparent and efficient market for securitizations, with a greater role for institutional investors, including insurance companies. another crucial passage of the communique was devoted to the progress of the work that the g20 commenced immediately after the outbreak of the global crisis with the aim of constructing a new framework of rules for the financial system, to make it more resilient and less exposed to crises. in this context, so - called shadow banking has always been seen as a worrisome source of risk. shadow banking means financing of the real economy intermediated by entities that are not banks but act, at least in part, as if they were

gill marcus : headwinds from the global crisis – the need for proactive responses address by ms gill marcus, governor of the south african reserve bank, at the ort sa fundraising dinner, sandton, 31 july 2012. * * * this evening is a celebration of the work that ort does in promoting education and training in south africa. the focus could not be more appropriate : education and training is key to giving each and every south african a real chance in life, the ability to break cycles of poverty, and is an imperative for long term economic growth in this country, which faces huge legacy challenges in the education system. sadly, despite significant resources being allocated to education, many parts of the system remain dysfunctional. a literate and skilled labour force is necessary to ensure domestic growth, employment opportunities, social stability and cohesion, and the ability to compete globally. unfortunately the global environment in which we find ourselves is extremely difficult and is likely to remain so for a good number of years. the challenges facing europe are of a long term nature, so even if appropriate steps are taken at this stage to deal with some of the issues that are making the headlines, the best case scenario will still be one of slow growth for some time to come before the required structural reforms can take place and take effect. this is supposed to be a light - hearted evening where we can relax, share jokes and enjoy ourselves. unfortunately, we cannot ignore what is happening in the world around us, recognising that behind the numbers, often in the hundreds of billions, that are frequently referred to stand tens of millions of people whose lives, hopes and dreams have been altered forever. central bankers have the reputation of being the party poopers, the ones who take away the punch bowl as the party really gets started, as our function is often to guard against excesses of various kinds. tonight my role will be no different. we are living through extremely challenging times, and unless we recognise the gravity of the situation, we will not take the required steps in time to create a buffer against the risks that we face. at the root of the problem is the global economy, but underlying problems and the structure of our own economy and society will shape how the global downturn will impact on us. the recent data coming out of the world economy makes depressing reading. in the last two weeks or so alone we learned the following : the uk economy contracted by 0, 7 per cent in the second quarter (