- known that low interest rates and low inflation have been prolonged and the relationship between growth and inflation has weakened since the global financial crisis. in response to this changing environment, the fed has recently changed its 6 / 9 monetary policy strategy, focusing more on employment stability. while korea is experiencing structural changes not unlike those in major countries, our situation calls for more attention on financial stability. therefore, we need to examine the performance and limits of the current monetary policy framework, and review whether there is a more effective way of operating it tailored to our circumstances. dear members of the bank of korea! while we face growing difficulties in conducting policy amid rapid changes in the economic environment, the expectations of the general public toward the central bank have heightened. to meet these expectations and firmly establish our standing as a credible central bank, it is all the more important that we achieve noticeable performance in our duties and responsibilities. an organization can generate outcomes only when an individual staff member fully exercises his or her expertise. in particular, at times like these when there are high uncertainties, the abilities to precisely analyze economic phenomena and make insightful forecasts are needed more than ever before. 7 / 9 moreover, in order for the bank to continuously create value that contributes to the korean economy, it is fundamental that we have a healthy organizational culture in place. for this, we will need to eliminate inefficiency from our operating practices while achieving innovations across the entire management system, including recruitment & transfer and evaluation & remuneration. we have recently completed a third - party assessment of organizational health by listening to candid opinions from the staff. we will accept the results of the assessment in their entirety and take them as the starting point of our efforts to improve our organization. we will first push forward with short - term tasks, while pooling all of our wisdom to set up measures for restructuring the management system over the medium - to long - term horizon. 8 / 9 my fellow members of the bank of korea! last year was a time in which we devoted strenuous efforts to respond to the coronavirus crisis. this year will likely be another challenging year for our economy. we should remain hopeful and confident, while staying vigilant and faithfully fulfilling our roles and responsibilities. as we greet this new year, i want to wish you all the very best of health and good fortune. thank you. january 4, 2021 governor juyeol lee 9 / 9

yves mersch : towards a new collateral landscape speech by mr yves mersch, member of the executive board of the european central bank, at the 2nd joint central bank seminar on collateral and liquidity, hosted by the ecb and the deutsche bundesbank, hamburg, 17 september 2014. * * * introduction ladies and gentlemen, it is a pleasure to open the second day of the second joint central bank seminar on collateral and liquidity, hosted by the european central bank ( ecb ) and the deutsche bundesbank. i will reflect on the developments we are seeing in what is often referred to as the “ new collateral landscape ” and, in particular, consider the role central banks have played and can continue to play in order to help shape this new landscape. in this regard i will concentrate on the 1 ) eligibility, 2 ) availability and 3 ) mobility of collateral assets, as these elements represent some of the key subjects in the unfolding collateral landscape. looking back at developments in recent years, it is clear that the financial crisis and the accompanying regulatory reforms have assigned a more prominent role to collateral and placed greater emphasis on high - quality assets in general. we have seen a clear shift away from the use of unsecured funding in favour of secured funding in the money markets. this structural change alone has created new issues and challenges and it is having a significant impact on demand for collateral assets and the way monetary policy is implemented and transmitted. one of the key topics of discussion two years ago at the first joint central bank seminar on collateral and liquidity, was the growing demand for collateral. at that time, concerns were emerging that collateral was becoming scarcer, with expectations that demand would substantially outpace supply. these concerns were mainly fuelled by upcoming regulatory changes, the details of which were not fully elaborated at that time. another prominent topic was the importance of collateral for central banks. in response to the crisis, many central banks had broadened their collateral frameworks to support their counterparties in accessing central bank funding given the problems with the availability of market funding. taking the various elements together, there was general agreement that demand for collateral assets would indeed increase in the forthcoming years and hence collateral would become relatively scarcer, although an absolute collateral scarcity was unlikely. a subsequent study carried out by the basel committee on the global financial system ( the cgfs ) and published in 2013 reconfirmed this view, noting that while this increase in demand could lead to “ temporary shortages in some