is usually referred to as financial stability concerns, to put it simply, working in various ways to ensure the financial system is stable and functions efficiently. for example, individuals, companies and organisations must be able to make and receive payments in an efficient manner. when goods are transported to consumers via our physical infrastructure, such as the road network or by air, the payment for the product is sent to the end recipient by means of the “ financial infrastructure ”. if the financial infrastructure did not function, the economy would more or less grind to a halt. the financial system also makes it possible to manage various risks that can arise in the financial markets. this is important to both households and companies. another important function is to be able to save and borrow money via the financial system. this gives households and companies the possibility to distribute incomes and consumption over time. the funds that are saved can be borrowed by companies and households to finance various investments which can then create employment and growth. when there is distrust and disturbances in the financial system, this function may be impaired, which can lead to a credit crunch. first the financial sector is affected, but then it gradually becomes more difficult for households and companies to borrow, too. consumption and investment then decline, which can lead to a substantial economic downturn. a credit market that functions well is thus an important condition for good growth. to summarise, one can say that the financial system ’ s functions are very important for economic development. it is important that the system is stable for our society to function properly on the whole. but financial stability is something that most people probably often take for granted. as long as everything is functioning well, the focus of public debate is much more often on our interest rate policy and the inflation target than on our stability task. but more recently, as the functioning of the financial markets has been hampered, the situation has almost been reversed. it has also become very clear how closely related our two main tasks are. the riksbank ’ s most important tool in conducting monetary policy is the repo rate. one can say that we try to influence economic activity and inflation by steering the price of credit, that is, interest rates. but to be able to do this, the payment system and the credit markets must function so that the riksbank ’ s interest rate decisions have an impact on other interest rates in the economy. financial stability is in other words more or less a condition for being able to conduct monetary policy in an efficient manner

payments are being made in a timely way. in addition, we have a new poll about credit and financing for small businesses, the latter are an important source of new jobs. the survey asks firms about credit applications and reasons for not seeking credit. almost 900 regional businesses responded to our may 2011 poll, of which nearly 15 percent were from the upstate region. the next poll will be in january. if you, as part of a small business, would like to participate in our january poll, please pass your card to my colleagues in the audience. next month, we will host a workshop for the new york city metro area ’ s small businesses – to provide information about how they can participate in the global economy and expand their companies by exporting their products and services. the export - import bank, the small business administration and the u. s. department of commerce will be on hand. they will tell participants how to tap demand in the global marketplace and what government programs are available to enhance credit, reduce payment risk and increase lines of working capital. we are also facilitating a “ speed mentoring ” forum in which small businesses will receive feedback on their business plans and advice about applying for financing from a range of finance professionals. in 2012, we ’ re planning similar events in the capital region. we hope to partner with many of you to support the small business sector. as you know, even states as wealthy as new york have large pockets of poverty. so, we target some key initiatives specifically to low - and moderate - income groups. we have worked hard to help neighborhoods that face high foreclosure rates. for the past three years we have provided housing advocates, including the empire justice center, with the latest information on mortgage conditions, via roundtables, presentations and newsletters. to share what we learn about our diverse district, we have a rich website. i invite you to visit newyorkfed. org to explore our highly localized maps and information on small business, credit and housing conditions and even the latest job openings at the new york fed. finally, and crucially, in the aftermath of the financial crisis, we are working with our colleagues in washington, d. c., and at other agencies to help put the nation ’ s financial system on a firmer footing. yet, much remains to be done and we are determined to keep at it. i recognize fully that there can be no return to pre - crisis business as usual – whether on the part of the financial sector