robert holzmann : the central bank of the future - opportunities and challenges opening remarks by dr robert holzmann, governor of the oesterreichische nationalbank, the austrian central bank, at the oesterreichische nationalbank ( oenb ) economics conference and suerf conference colloquium, vienna, 11 june 2024. * * * check against delivery distinguished guests, welcome to this year's oenb economics conference and suerf colloquium. let me start by thanking you all for joining us, both virtually and in person. i would also like to extend my sincere gratitude to the distinguished speakers, panelists and researchers who have agreed to honor us with their contributions to this event. and last but not least, a heartfelt " thank you " also goes to the to all the people involved in the organization of this event. last year, we celebrated the 60th suerf anniversary and the 50th oenb economics conference, but in a different venue. as a belated gift, we are privileged to be back in this beautifully refurbished cashier hall – our kassensaal. as we gather once again for this conference, let's take a moment of reflection and anticipation. last year, our discussions centered around the theme monetary policy in uncertain times : towards robustness and resilience. it was an exploration of the challenges facing our economies amidst the backdrop of unpredictability. in my introductory remarks at last year's conference, i spoke about the " propheticcapacities " of oenb - suerf conferences. this year, i plan to harness this prophetic power as we embark on a journey to discuss and design the central bank of the future – a central bank that is not only reactive but one that is well - equipped to navigate the complexities and uncertainties that lie ahead. some reflections on current challenges as we reflect on the first 25 years of the euro, we cannot overlook the challenges we faced. many of these challenges have left legacies that will continue to shape our future journey : one of these challenges stems from the necessity of employing unconventional monetary policies that arose when we found ourselves at the effective lower bound. the consequence of these policies is the accumulation of vast balance sheets, which now exert pressure on central bank profits. this puts central banks in a delicate position. while our balance sheets now consist of assets yielding low interest rates, commercial banks enjoy a substantial 3. 75 % interest payment through

: 1. consultants are hired by management and work to add value to the shareholders that management represents. supervisors, in contrast, ultimately work for the public at large. rather than adding shareholder value, supervisors seek to reduce or eliminate excessive risks to the financial system and the federal safety net. 2. supervisors have much more impact in the banking industry than even the most savvy or articulate consultant. we must be willing to exercise that moral and legal authority to forestall as best we can practices that we know might become harmful even before the full results of such practices become evident. in this we may not always be popular. 3. finally, consultants can be wrong with only relatively limited consequences. the caliber of their advice is rarely subject to after - the - fact scrutiny. when a consulting firm makes a mistake, it may lose a client and that company may lose some money. when a banking agency fails to act, the consequences can be widespread for the economy and the public at large. to keep the public ’ s trust, we need to be ever mindful of whose interests we serve. we do want to minimize the burden of supervision. we do want to foster modernization. we must stay current with the latest financial techniques. we can assist institutions by identifying weaknesses and, at times, we can offer views toward resolution. ultimately, however, we are forced to supervise and regulate banks in the interest of the public.