in the twentieth century to make small loans to industrial workers. as insured banks, ilcs are supervised by the fdic as well as by the chartering state. however, under a special exemption in current law, any type of company, including a commercial or retail firm, may acquire an ilc in a handful of states - principally utah, california, and nevada - and avoid the activity restrictions and supervisory requirements imposed on bank holding companies under the federal bhc act. when the special exemption for ilcs was initially granted in 1987, ilcs were mostly small, local institutions that did not offer demand deposits or other types of checking accounts. in light of these facts, congress conditioned the exemption on a requirement that any ilcs chartered after 1987 remain small ( below $ 100 million in assets ) or refrain from offering demand deposits that are withdrawable by check or similar means. this special exemption has been aggressively exploited since 1987. some grandfathered states have allowed their ilcs to exercise many of the same powers as commercial banks and have begun to charter new ilcs. today, several ilcs are owned by large, internationally active financial or commercial firms. in addition, a number of ilcs themselves have grown large, with one holding more than $ 50 billion in deposits and an additional eight holding more than $ 1 billion in deposits. affirmatively granting ilcs the ability to offer business now accounts and open de novo branches across state lines would permit ilcs to become the functional equivalent of full - service insured banks and operate across the united states. this result would be inconsistent with both the historical functions of ilcs and the terms of their special exemption in current law. because the parent companies of exempt ilcs are not subject to the bhc act, authorizing ilcs to operate essentially as full - service banks would create an unlevel competitive playing field among banking organizations and undermine the framework congress has established for the corporate owners of full - service banks. it would allow firms that are not subject to the consolidated supervisory framework of the bhc act - including consolidated capital, examination, and reporting requirements to own and control the functional equivalent of a full - service bank. it also would allow a foreign bank to acquire control of the equivalent of a full - service insured bank without meeting the requirement under the bhc act that the foreign bank be subject to comprehensive supervision on a consolidated basis in its home country. in addition, it would allow financial firms to acquire the equivalent of a full - service bank without

. central banks face important challenges in several areas, such as determining the timing and extent of reversing policy easing, coordinating with fiscal authorities and other central banks, and communicating their strategies to the public. a disciplined analysis of the data will test the science of central banking, whereas a good assessment of the operating environment and judgement will put the spotlight on the art of central banking. finally, i would like to congratulate all the nominees for this year ’ s spire awards. whether you or your team walk away with a prize or not, the fact that you were nominated is indeed already a great recognition by your clients and your peers for the contribution you have made to the south african bond market. i thank you all for your attention.