urban backstrom : the importance of a well - functioning stock market remarks by mr urban backstrom, governor of sveriges riksbank, at the world federation of investors 20th world congress, stockholm, 7 june 2002. * * * first i want to express my gratitude for the invitation to attend your congress and briefly discuss with you the importance of a well - functioning stock market. let me start by saying that just as it is important that networks for transport, electricity and telecommunications function properly, so is it essential that, for example, payments can be transacted, capital can be saved and channelled to the most profitable investment projects and that both households and firms get help in handling financial uncertainty and risk as well as possibilities of spreading consumption over time. financial markets constitute an important part of the total infrastructure for every economy that has passed the stage of domestic production. the financial system performs three main tasks : firstly, it handles payments ; secondly, it channels savings to investments with a good return for future consumption ; and thirdly, it spreads and reduces economic risks in relation to the players ’ required returns. a smooth functioning of all these activities facilitates economic growth in that lower costs and risks promote the production of goods and services as well as employment. in this way the financial system contributes to increased prosperity. the stock market is one of the most important sources for companies to raise money. experience has taught us that the price of shares and other assets is an important part of the dynamics of economic growth. rising share prices, for instance, tend to be associated with increased business investment and vice versa. share prices also affect the wealth of households and their consumption. therefore, central banks tend to keep an argus eye on the development of the stock market and reflect on how the financial system functions. another reason is the oversight of financial stability. today, i would like to confine my brief remarks to some aspects that have to do with the fact that shares now weigh considerably more heavily in household portfolios than was the case thirty years ago. what are the implications of this trend? increased interest in stock market investment in recent decades the financial system in most western countries has undergone a remarkable transformation. one feature of this development is disintermediation. a portion of the funds involved in saving and financing flows directly to the financial markets instead of being routed via banks ’ traditional lending and deposit operations. the general public ’ s heightened interest in investing in the stock market, either directly or through mutual funds, has been

amando m tetangco, jr : financial capability as a 21st century life skill speech by mr amando m tetangco, jr, governor of bangko sentral ng pilipinas ( the central bank of the philippines ), at the citi - ft financial education summit, makati city, 5 december 2012. * * * mr. michael zink, head of asean and singapore citi country officer ; mr. sanjiv vohra, citi country officer for the philippines ; secretary imelda nicolas, chairperson, commission on filipino overseas ; ms. brandee mchale, chief operating officer, citi foundation ; mr. david pilling, financial times asia editor ; ms. kathy hurley, executive vice president, education alliances, pearson foundation ; distinguished resource persons ; experts and practitioners in financial education ; friends who have traveled from other countries ; my colleagues in the bsp ; ladies and gentlemen, good morning everyone! finally, this annual financial education summit is in the philippines. now on its 9th year, it continues to enjoy such high level of interest and support for its relevance to the times. congratulate and thank citi and ft and the other sponsors and organizers of this gathering. for starters, its forum theme “ financial capability as a 21st century life skill ” … is an outright declaration that financial capability is a must - have - skill. i agree with this statement. indeed, the ability to make sound financial choices and decisions is essential … to ensure one ’ s financial well - being. and yet, most people are sorely lacking in this necessary skill. the summit ’ s keynote session pushes the envelope further : it raises the social, economic and moral imperatives of bridging the financial capability gap. discussions are also bound to be thought - provoking on the topic “ the ultimate financial education challenges – impact, scale and sustainability. ” ladies and gentlemen. the organizers of this summit have brought together world - class finance education experts and advocates to tackle these important issues. the bangko sentral ng pilipinas is therefore pleased that it is a host partner in this financial education summit. for your information, the bsp was also co - host... in the last two days... of the asia and the pacific regional meeting on child and youth finance organized by the child and youth finance, international. and three months ago, the bsp co - hosted with the oecd in cebu the asian seminar on financial literacy and inclusion