the start in 1998, a large share of the fund was allocated to europe. at that time, the emphasis was on exchange rate risk related to the trade pattern of the norwegian economy. as european countries are our most important trading partners, europe was overweighted compared with market weights. three years ago, the ministry of finance concluded that exchange risk had diminished, partly due to increased globalisation. consequently the fund ’ s overweight in europe was reduced. at the same time, the allocation to emerging markets was increased. the average ownership share in a listed european company is now around 2. 5 percent, which is twice the ownership share on other continents. almost 2 percent of the fund is invested in italy. the share invested in emerging markets is growing, as these markets develop. over the past couple of years, we have started investing in slovenia, ghana and mauritius, to provide three examples. at the end of 2014, 10 percent of the fund was invested in emerging markets. still, close to 80 percent of the fund is invested in north america and europe, where markets are largest and the most advanced. bis central bankers ’ speeches through the fund ’ s investments in equities and bonds, we seek to ensure broad exposure to global equity and bond markets. in the management mandate, the ministry of finance has defined public stock and bond indices, which are used to benchmark our performance. these benchmarks are based on the ftse and barclays indices. these indices are constructed to meet the needs of a typical investor. as pointed out earlier, the oil fund is not a typical or average investor. rather, the fund has certain distinguishing characteristics. the investment strategy seeks to exploit these characteristics to improve the overall balance between risk and return. our portfolio will therefore deviate from the index along a number of different dimensions : • first, the index providers adjust for so - called free float. the free float of a company represents the portion of a company ’ s shares that are readily available for trading. shares owned by governments, employees and company founders are assumed not to be readily available for trading. in the free float adjustment, these shares are removed by the index provider and the stock enters the index with a lower weight. in our management of the fund we use a different starting point to better reflect the relative economic importance of companies. • second, the duration in the fixed income index is determined by market dynamics. in the current low - rate environment, issuers have chosen to opt for longer dated

andreas dombret : the quest for stability – regulating and supervising banks speech by dr andreas dombret, member of the executive board of the deutsche bundesbank, at the handelshochschule leipzig, leipzig, 2 october 2014. * 1. * * introduction ladies and gentlemen thank you for inviting me to the handelshochschule in leipzig. it is a pleasure to be here. first of all, let me tell you a short story i heard the other day. a young banker decided to get his first tailor - made suit. as he tried it on, he reached down to put his hands in the pockets but, to his surprise, found none. he mentioned this to the tailor, who asked him, “ you ’ re a banker, right? ”. the young man answered, “ yes, i am. ”, to which the tailor replied, “ well, whoever heard of a banker putting his hand in his own pocket? ”. it is certainly true that the reputation of bankers has suffered during the crisis. but still, banks and savings institutions play a vital role in any modern economy and, indeed, in our everyday lives. we simply could not manage without them. entrepreneurs, bankers and individuals alike : we all benefit from a stable banking and financial system. financial stability is therefore a public good, not just nationally but on a global scale, too. at the same time, banking can sometimes be associated with external effects. it doesn ’ t just affect banks and their business associates ; it also has an impact on third parties with no stake in the game. and during the financial crisis, those third parties were the taxpayers. regulators and supervisors can rectify a market failure of this kind, and it is in the public interest for them to do just that. it isn ’ t a question of whether but of how to regulate. and it is this matter of how to regulate that i would like to discuss now – not by focusing on specific legal provisions, but by outlining certain principles which i consider particularly important. 2. regulating banks what is the job of regulators? well, in a nutshell, their job is to create a framework that allows market forces to produce efficient outcomes while also preventing instability and crises. yet it is vital to ensure that this framework is not overly rigid ; we should not confuse stagnation with stability. the financial system is in constant flux, and regulation has to keep pace with it. the regulatory framework therefore needs to be just as adapt