##evik ” and the leader of social democrats, and governor risto ryti, who were joined later on the day by kyosti kallio, president of the republic at the time. now you may wonder where the acronym “ bofit ” actually comes from. let me tell you. as i noted in my opening remarks today, its origins can be traced to the bank of finland ’ s bilateral trade department, which focused on trade with the then soviet union. in finnish, the department ’ s name was “ idankauppa ”, and research in this field was “ idantutkimus ”, so an ‘ i ’ and a ‘ t ’. the next thing was to combine this it with the bof for bank of finland : bofit! while we have held on to the handy bofit acronym all this time – and will certainly keep the brand – the actual full name of the institute has changed over the years. each time this has reflected relevant real - world changes in geopolitics and in the global economy. until last year, the full name was “ bank of finland institute for economies in transition ”. however, the word “ transition ” is not necessarily the most appropriate one any longer, for various reasons. so, we settled for the new name, bank of finland institute for emerging economies, which follows the currently valid taxonomy in international political economy and will certainly serve bofit well. 1 / 2 bis central bankers'speeches ladies and gentlemen, for those of you who were able to attend the conference today, i hope you found today ’ s discussions at the conference enlightening. in my view, one thing in particular is worth noting and let me reiterate that. that is, in spite of all the ongoing global tensions, the return of power politics, and the talk of a new cold war, global policy cooperation among the central banks is very much alive and functioning. indeed, this cooperation was crucial in sparing the world economy from a new recession or even a depression, when the covid - 19 pandemic forced the global economy into lockdowns and slow motion began 20 months ago. the rapid and forceful action by the federal reserve and the european central bank has supported the economy through troubled waters. for instance, the dollar swap lines agreed between the fed, the ecb and four other western central banks preserved dollar funding, which is the fuel of the financial system and thus of the world economy. and

pentti hakkarainen : enhancing the free information flow and cooperation between supervisory and other authorities luncheon speech by mr pentti hakkarainen, deputy governor of the bank of finland, at the 2nd fin - fsa conference on eu regulation and supervision – “ banking and supervision under transformation ”, helsinki, 12 february 2013. * * * ladies and gentlemen, one of the most important lessons from the financial crisis has been that there was no adequate coordination and exchange of information between central banks and supervisors. in other words, the macro and micro supervisory perspectives were not combined. another lesson has been that there were no macro - prudential tools available to intervene effectively – for instance – in growing instabilities in real estate markets, and the necessary macro - prudential tools are only now becoming available. it is certainly very important to develop the new macro - prudential instruments and policies – this is quite clear. however, it is even more important in my view that major trends and risks in the financial sector or the macro - economy do not escape the attention of financial supervisors. to achieve this you need constant and very close cooperation between supervisors and central banks. the macro and micro supervisory functions should not be seen as separate silos but two sides of the same coin! after every financial crisis there are always needs to correct shortcomings which have appeared in the crisis as evident ex post. this time it is not different. now we have seen many ideas how to step up the necessary cooperation between the macro - and microsupervisory functions and move central banking and supervision closer together. in finland, the decision to put supervision close to the central bank was made already earlier [ – in 1994 regarding financial sector supervision and in 2009 also insurance sector supervision – ] based on lessons learned from the banking crisis in the early 90 ’ s and on practical reasons like efficient use of limited resources in a small country. the financial supervisory authority ( the fin - fsa ) is at the same time an independent organisation, with its own decision - making structure, but also an integral part of the bank of finland. we have now reaped important benefits from our model during the recent financial crisis. there are several examples of the benefits of our model. common databases are shared, valuable information is exchanged and extensive cooperation takes place in financial stability analysis and stress testing. one concrete example is the handling of the troubled icelandic banks in 2008 here in finland. i think it is a good illustration of how big