that follows. in any case, it will not be brief. 2 the fourth issue is the fine line between monetary policy and fiscal policy. measures to take on individual credit risk such as corporate debt are extraordinary steps for a central bank since they come close to the area of fiscal policy which deals with resource allocation at the micro level. i believe such measures are only justified when we are facing a situation where, if left untouched, there is a substantial risk that credit market functions will deteriorate and the resulting weakening of the financial conditions can seriously damage the economy. it must also be compatible with the legal framework provided in each country's central banking law. when such measures are introduced, in order to avoid constraining market functioning where market participants become reliant on such extraordinary measures, it would be important to have an appropriate built - in exit mechanism which reduces the incentive to use the facility as market functioning recovers. additionally, since it is in essence close to the realm of fiscal policy, a clear understanding of which authorities are taking on the risks involved is indispensable. this is also important from the perspective of maintaining public confidence in the financial strength of the central bank. if the central bank's financial strength is perceived to be weakened, concerns may arise, subtly through various channels, with regard to its ability to effectively fulfill its monetary policy mandate. fifth is communication with the markets. without public trust in the organization, a central bank cannot effectively conduct monetary policy. words and deeds have to match. there is much uncertainty with regard to the effectiveness of unconventional monetary policy and extraordinary measures may be pushing the boundary of monetary policy. because of these two aspects, thorough communication with markets and the public becomes all the more important. careful explanations while continuously evaluating both the positive and adverse effects of the steps taken become critical. even during times of a crisis, if central banks take time - inconsistent policy measures, this could rather have negative effects on confidence in the central bank, and as a result reduce the effectiveness of monetary policy. at the end of the day, the central bank needs to communicate its aims and strategies in response to the characteristics of the problem the economy faces, and also needs to take policy measures which are consistent with the communication. i would like to emphasize once again that, especially in a crisis situation, the central banks must make clear their commitment to the stability of financial markets and the financial system, and take decisive policy actions to achieve such goals. concluding remarks the five issues i

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