ensuring investment opportunities with rewarding returns that are also predictable, while at the same time protecting the savings from inflation erosion. retirement benefits schemes thus thrive well in stable financial systems and where these benefits can be invested for gain and also develop the financial market. retirement benefits schemes benefit from central bank in both scores : stable, predictable low inflation ; stable, well - functioning financial sector. the law mandates the central bank to play two overriding roles. i would therefore like to say a word or two on how the central bank in pursuit of the two overriding goals would be beneficial to the retirement benefits schemes. let me start with inflation. the central bank is committed to pursue effective monetary policy that is consistent with the development agenda of the country and the development of an appropriate financial sector in which you play a role. in particular, the commitment is to a prudent monetary policy that keeps a tight lid on inflation. this should help retirement benefits maintain the value of benefits. this is a commitment which the central bank will sustain and thus make a meaningful contribution to the economy and to retirement benefits schemes. this environment allows you decide where to invest your funds and assures you that whatever payoffs you make to beneficiaries, they are not eroded by inflation and are mediated efficiently by the financial sector. to ensure financial sector stability, the central bank provides prudential guidelines and other regulations to guide the operations of the banks and micro finance institutions to provide proper functioning and orderly exit. the bank is also charged with the responsibility to promote an efficient and effective payment, clearing and settlement system. this facilitates the proper working of the financial sector and stable payments systems. note : effective monetary policy requires an efficient financial sector. this has been identified as a sector to lead the way in the vision 2030. i also anticipate that the financial sector will require to develop innovative products to tap into these savings provided by your schemes. i have observed the development of fund managers in the market in the last 5 years has been tremendous – a positive development. i am therefore looking forward to a good working relationship with the industry as we strive to achieve the nation ’ s overall development goals. thank you.

functioning of the monetary policy transmission mechanism. the securities markets programme is a temporary measure to stabilise market conditions, it is not a vehicle to provide monetary financing to insolvent governments, which would breach treaty provisions. our bond purchases have so far been very small. outright holdings of government bonds in the context of the securities markets programme currently amount to just 3. 8 % of the eurosystem ’ s total assets. in addition, the interventions are fully sterilised by conducting liquidity - absorbing operations so that overall liquidity conditions and the stance of monetary policy remain unaffected. it is certainly true that with this non - standard measure, the ecb has entered a terrain in which it should not stay longer than absolutely necessary. it is up to euro area governments to address the root causes of the current problems, to develop and implement credible plans to put their public finances on a sustainable footing and thereby restore orderly conditions in sovereign debt markets. in this regard, let me point out that the state of the public finances in the euro area differs across countries. moreover, today ’ s fiscal imbalances have different causes in different countries. before the crisis, some euro area member states, such as greece and portugal, never managed to balance their books, even in good times. others, such as ireland and spain, did achieve seemingly healthy budget surpluses in good times. but they failed to perceive the extent to which tax revenues were vulnerable to an unwinding of economic imbalances and allowed spending to grow at an unsustainable pace. looking back, it is obvious that the existing eu fiscal framework has not been fully implemented. many countries have violated the rules. peer pressure has not worked. in addition, the reform of the stability and growth pact ( sgp ) in 2005 has weakened the fiscal framework substantially. there has been a lack of enforcement of fiscal discipline at the eu level and insufficient national incentives to comply with the eu rules. against this background, the european council has mandated a task force led by the president of the european council, herman van rompuy, to consider ways to strengthen the bis central bankers ’ speeches surveillance of budgetary policies and make corrective measures more effective. the task force was also asked to consider an improved surveillance of competitiveness developments and the correction of imbalances as well as the design of an appropriate framework for crisis management. in october 2010, the van rompuy task force presented its final report to the european council, which endorsed its