' t go further into that story here. honoured guests : the present situation is similar to that in the early 1970s in many ways. a new, labourintensive industry – land - based freezing of fish – was introduced shortly after 1970, concurrent with the expansion of iceland's territorial waters. gdp growth measured over 9 % in 1972, as it did in 2022. then, in 1973, an international energy crisis struck and there was a volcanic eruption on heimaey, and some 5, 000 people – perhaps more – found themselves looking for a new home. but what sets the two periods apart from one another is that in the 1970s, the central bank had neither the authority nor the independence to respond to inflation by tightening the monetary stance. the situation today, of course, is entirely different. the central bank was granted independence in 2001, and the inflation target was adopted at the same time. this brought with it a simple division of tasks : democratically elected representatives decided on an appropriate inflation rate and then empowered the central bank with implementing it. i view this division of labour as a key factor, not only for price stability but for political stability as well. nevertheless, monetary policy needs political support and prudent fiscal policy. both parliament and the government must safeguard the central bank's independence and ensure that the bank can perform the role entrusted to it by law. inflation targeting has been highly successful in countries with a long history of democracy, as the groundrules require transparency and public accountability, which are compatible with the groundrules of an open society. with amendments to the central bank act that entered into force at the beginning of 2020, the bank's responsibilities were expanded further. the financial supervisory authority merged with the central bank of iceland, and responsibility for financial stability and financial supervision were placed under the aegis of the merged institution, alongside price stability. these three functions support one another in the achievement of a stable economy and financial system. the methodology entailed in inflation targeting – which prioritises clear ground rules, transparency, and public accountability – has been adapted to the central bank's other two key objectives : financial stability, and sound and secure financial activities. ; i. e., financial supervision. in the main, decisions on the application of the bank's policy 3 / 9 bis - central bankers'speeches instruments and the imposition of penalties are taken by three standing committees whose members include outside experts, thereby ensuring transparency and distribution of power.

leonardo badea : on financial ( in ) stability and systemic risks in a world with high uncertainty and multiple disequilibria closing remarks by mr leonardo badea, deputy governor of the national bank of romania, at the15th edition of the seminar on financial stability issues " on financial ( in ) stability and systemic risks in a world with high uncertainty and multiple disequilibria ", sinaia, 4 october 2024. * * * distinguished guests, esteemed colleagues, ladies and gentlemen, first of all, allow me to express my sincere regrets for not attending the seminar in person, due to an overlap with the last meeting of the national bank of romania's board, in the current mandate. i am, however, pleased to have had the opportunity to join you virtually today, following the stimulating discussions that took place in sinaia. as we conclude the 15th edition of the seminar on financial stability, i wish to express my sincere appreciation to all of you for your active engagement and valuable contributions. over the past few days, there were explored a wide range of critical issues that shape the stability of the global financial system, from the main challenges faced by policymakers in the current geopolitical context, to the evolving risks of digital finance or the vulnerabilities in the real estate sector. financial stability today goes beyond managing traditional risks such as liquidity, credit or real estate booms ; it now requires an understanding of technological advancements, climate change, and geopolitical uncertainty. moreover, mounting fiscal imbalances and high levels of both public and private debt in many countries represent other elements to closely monitor. the first panel provided an excellent coverage of the key systemic risks we are currently facing, along with the challenges they pose to financial stability. with that in mind, the natural question arises regarding the appropriate measures to implement. in this context, the second panel took a deep dive into the topic by exploring the effectiveness of macroprudential policy. considering the vulnerabilities observed in housing markets across the globe, we gained valuable insights from the panel's examination of potential spillover effects from the real estate sector on financial stability. lastly, i found the dynamic discussions on emerging challenges particularly engaging, especially regarding the interaction between the rapid advancement of ai technologies and the stability of the financial sector. as emphasized in today's panel, artificial intelligence has the potential to fundamentally transform financial systems and is swiftly 1 / 3 bis - central bankers'speeches evolving into a