of the acquired assets. there is a regulatory framework in place, under the provisions of sarfaesi act, which enables arcs to undertake resolution. however, there are concerns around activities in this process chiefly relating to the arc route becoming a vehicle for entry of the'tainted'promoters, who in the first place were responsible for the default of the underlying entity. this aspect has become particularly relevant since the introduction of section 29a in the insolvency and bankruptcy code ( ibc ), which was specifically meant to keep out such promoters. however, often, entities meet this requirement by merely obtaining a declaration signed by the perspective buyer without undertaking any independent verification. 2 / 5 bis - central bankers'speeches while the current regulations largely aim to address the three issues mentioned above, there are certain other areas which are engaging regulatory attention. one pertains to operational flexibility for debt aggregation. for instance, under extant guidelines, an arc can acquire financial assets from another arc but effectively the existing sr holders have to exit when the underlying financial assets are sold by one arc to another arc. in this context, there have been suggestions that a change in the trustee / manager role from one arc to another should be allowed, without necessarily extinguishing the srs. moreover, for debt aggregation and better value realization, there is a demand that even the equity pertaining to the distressed company should be allowed to be sold by the lenders to arcs along with debt. further, in cases where arcs are permitted to acquire equity and by extension ownership / control of the borrower entities through various channels3 such as ibc or conversion of debt into equity, they should be allowed operational freedom to take decisions, including sale / lease of business. we are examining these issues and are in touch with the industry to firm up our views. role of governance but there is a key area which is a point of concern for us as regulators, namely the governance in arcs. sound and robust governance provides a strong foundation for the arcs to build a robust business model. governance, in this context, transcends mere regulatory compliance ; it embodies a philosophy of accountability, transparency, and ethical conduct. in case of distressed assets, where conflicts of interest looms large and fiduciary duties are tested, effective governance can serve to develop confidence in the processes adopted by the arcs. sound governance can also act as both a shield and a sword. it shields the stakeholders from conflicts of interest, ensuring that the decisions

øystein olsen : the conduct of monetary policy introductory statement by mr øystein olsen, governor of norges bank ( central bank of norway ), at the hearing before the standing committee on finance and economic affairs of the storting ( norwegian parliament ), oslo, 4 may 2015. * * * please note that the text below may differ from the actual presentation. accompanying charts can be found at the end of the speech or on the norges bank ’ s website. i would like to thank the chair of the committee for this opportunity to report on the conduct of monetary policy. my introduction here today is based on norges bank ’ s annual report for 2014 and our monetary policy assessments up to the monetary policy meeting in march. chart : inflation and projected capacity utilisation monetary policy in norway is oriented towards keeping inflation low and stable. the operational target is consumer price inflation of close to 2. 5 percent over time. the inflation target provides the economy with a nominal anchor. inflation has edged up in recent years and hovered around 2. 5 percent through 2014. when inflation expectations are firmly anchored, monetary policy can serve as the first line of defence when the economy turns down. monetary policy seeks to be robust and takes into account the risk of particularly adverse economic outcomes. the goal is to avoid an abrupt economic downturn and higher unemployment. in the event of major shocks, for instance a sharp drop in oil prices, this may imply a more active monetary policy than normal. the consideration of robustness also implies that monetary policy seeks to mitigate the risk of a build - up of financial imbalances. hence, house price inflation and debt growth are also important for monetary policy. norges bank weighs the different types of risk against each other. six years have now passed since the global economy was hard hit by the financial crisis. the norwegian economy has fared well in the years following the financial crisis, stimulated by vigorous activity in the petroleum industry. growth has slowed in recent years and a decline in oil investment will result in low growth for a period. against the background of weaker growth prospects for the norwegian economy and reduced foreign interest rates, norges bank lowered its forecast for the key policy rate through 2014 and reduced its key policy rate in december 2014. chart : money market rates for trading partners global economic growth remains moderate, but there are wide differences across countries. the sharp fall in oil prices is positive for most of our trading partners, but is dampening activity in oil - producing