but we are aware that these are issues that require constant evaluation and dialogue. not only is the world around us changing, it is not black and white either. there are grey areas. dilemmas. ethical standards may clash with doing your job effectively. let me give you an example from my own experience. as governor and as fsb chair i regularly engage with people from the financial industry. it's a way for me to keep up with what's going on in the outside world. inevitably, there is often a degree of lobbying involved in these conversations. so what to do? the only way of not exposing myself to lobbying would be to cut all contacts with industry leaders. but then i would miss out on an information flow that in my view is necessary to do my job effectively. so i take a well - considered middle road. i am transparent about who i meet, i am as nondiscriminatory as my agenda allows, and i try to avoid situations in which there's too much one - way traffic. in a world that is changing and where many shades of grey exist, adapting the rules is not the only solution. you need to have an ethical culture within your organisation. i believe that an ethical culture is one where people have a properly developed ethical compass. people who understand that, especially for our types of organisations, the ethical bar is set high. you need people who are able and willing to think for themselves, based on our organisational values. moreover, in an ethical culture we 2 / 3 bis - central bankers'speeches need people to speak up when they see or hear a colleague doing something that is not ok. that can be difficult for many, because we often wish to avoid conflict or feel awkward taking the moral high ground. so that's why we as a board decided to offer training on what to do as a bystander who observes undesirable behaviour. the training was mandatory for managers. part of you will be taking this active bystander training this afternoon. in general, periodic training for all staff is important, not just to rehash what's right and what's wrong, but to boost awareness, to encourage people to ask the question : how would i deal with this situation? it is also important to know the views within your organisation on ethical issues. at dnb we recently conducted a survey on the perception of integrity among our staff. this biennial measurement gives us a good insight into our ethical

“ covid - 19 : how to contain the impact on the financial system ” speech by governor knot at the online iif annual membership meeting 14 october, 2020 in his novel the sun also rises, ernest hemingway describes a conversation between two men, one of whom recently went bankrupt. “ how did you go bankrupt? ” bill asked. “ two ways, ” mike said. “ gradually and then suddenly. ” end of quotation. this neatly sums up the risk we face at this stage of the economic crisis. until now, governments and central banks around the globe have been able to mitigate the economic fallout from the covid - 19 pandemic. but the health crisis persists. many countries are now experiencing a second wave of infections. for the economy, this means recovery now seems further away than we had hoped for. and the economic impact is deepening. many firms that so far have managed to keep their heads above water, may as yet go under. the banking sector is likely to feel the consequences of that in the near future. so as the economic slump continues, the question becomes more and more pressing : how do we, as governments, central banks, and financial institutions, how do we prevent the economic crisis from spilling over into a financial crisis? that is what i would like to focus on today. to start on a positive note, as we all know, this time the shock did not originate in the financial system. it comes purely from the outside. that is a key difference from the global financial crisis of 2008. also, banks are much better capitalized and have more liquidity than 12 years ago. as a result, the banking sector has done relatively well. it has been able to absorb much of the shock and keep credit flowing. so far, banks have been part of the solution rather than part of the problem. i think it ’ s fair to say this is largely thanks to the post - crisis regulatory reforms. over the past 10 years we have worked to strengthen buffers in the banking sector. we now see the rewards of our efforts. yet, i remain cautious. first, let ’ s not forget that back in march some market segments were under considerable stress. there was a search for liquidity in short - term funding markets, and money market funds in particular came under pressure. central banks had to intervene to make sure markets continued to function and provide credit. whereas 12 years ago we had to bail out the banks, this time, we have