also embarked on the following main projects aimed at containing build - up of vulnerabilities and at enhancing resilience of the financial system : i. a complete review of the banking legislation and the inclusion of a crisis management and resolution framework within the revamped legislation ; 4 / 5 bis central bankers'speeches ii. a deposit insurance scheme ; iii. the setting up of an asset management company to strengthen the balance sheet of banks, and iv. a national payments system legislation. at the start of this address, i referred to cyber - risks. the more banks, like individuals, are plugged to the global information grid, the more vulnerable they become to criminals familiar with the underlying technologies. when everything is connected, everyone is vulnerable. the cyber underworld is not short of people conversant with the art and craft of digital criminality. the financial sector is an appealing target for cybercriminals, the more so given that they can access the core systems of financial institutions even from far removed places in the world. payment systems are increasingly relying on sophisticated it platforms for clearing and settlements. systemic risks are very much present, with potential loss of confidence of the public at large should anything go wrong with the payment systems. these risks do pose a genuine threat to the very foundation of a financial institution and to financial stability in general. regulatory and supervisory authorities worldwide have taken measures to address cyber risks. but they are never adequate. the digital underworld is an ever growing threat to financial stability. prevention of cyber - attacks is a constant challenge for both the bankers and the regulatory authorities. ladies and gentlemen, no matter how elaborate, effective and comprehensive our regulatory and supervisory firepower will be, there will always be some element of residual risk that will defy our endeavours to contain them. the mauritius commercial bank ltd hosts events elegantly. i am sure you will be pampered amply by the bank ’ s proverbial hospitality. i wish you all a pleasant and memorable stay with us. thank you for your attention. 5 / 5 bis central bankers'speeches

and productivity of the arab and ultra - orthodox sectors ; otherwise, not only will we not remain in place, but we will even widen the gap vis - a - vis the advanced economies. for example, in educational achievements, already today there is some gap between israel and advanced economies, and it can be assumed that the arab and ultra - orthodox sectors are themselves at some gap vis - a - vis the general population in such achievements. the implication is that under current conditions, the increase in labor force participation of these sectors will be reflected in the addition of employees whose productivity is low to the workforce. the data indicate that in recent decades, the gap between israel and advanced economies in output per hour has remained. among the factors in this phenomenon are an unfriendly business environment, as reflected in international indices such as the doing business index, the problem of low competitiveness in specific industries, and a low rate of investment which leads to insufficient capital stock. looking at per capita gdp, as well, indicates that we have not closed the gap in recent decades. although we have seen more rapid growth of our per capita gdp in recent years, in light of the relatively moderate negative impact of the crisis on israel ’ s economy compared with other advanced economies, we clearly don ’ t want to hope for a continued contraction of the gap between israel and other advanced economies based on the this factor. the two demographic trends that i discussed – the decline in the share of the working age population, and the increase in the share of sectors with relatively low bis central bankers ’ speeches employment rates – are expected to deduct 1. 3 percentage points from the annual growth rate. in this regard, i of course noted the improvement, which is still slow, in the employment trends in the arab and ultra - orthodox sectors. the aging of the population is expected to lead to a sharp decline in the ratio of number people of working age to the number of the elderly, from 5. 5 today to 3 in 2050. the meaning of this is that there will be a need to increase the allocations for old age allowances, on healthcare expenditure, nursing care, and such, in order to maintain the current level of these allowances and services. poverty is another issue with which we will need to deal. in recent years there has been a trend of increase in the poverty rate among families with workers, while the stability in the general poverty rate is the result of an increase in the share of families with one