reaching structural changes have taken place in credit and capital markets, with hedge funds playing a major role in the process. it's fair to say, for instance, that credit derivatives would not have expanded at the same pace and with so high innovation without strong hedge funds involvement. what do those evolutions mean for the future? financial innovation is good and healthy for our economies. changes that have occurred in the last years strongly contribute to market efficiency and overall increase the resilience of our financial system. by allowing wider spreading of risk through credit derivatives, in particular, hedge funds bring an important contribution to market efficiency and liquidity. at the same time, the implications of those changes for financial market dynamics might be more complex and far reaching than before. new instruments have been developed in a very benign environment. liquidity in many market segments has not been tested in period of stress. how these instruments would behave in periods of stress is a major question for market participants and authorities alike. in such an uncertain environment, securing the full benefits of the structural shifts in the financial system does put a premium on risk management. everybody would agree, i think, that the first mitigant against the risks associated with hedge funds is robust internal risk management systems, both in hedge funds themselves and at their prime brokers. these are the basis for an efficient market discipline and a condition for financial stability. strong and rigorous implementation of sound principles for risk management seem essential. you have noticed the reference, in yesterday's g7 communique, to the paulson's task force ( presidents working group ). beyond that, there may be some additional questions to consider which, for the sake of argument and in order to launch the debate, i will put on the table rather in a provocative mode, but are dealt with in more detail and balance in my own ( and some other ) contributions to the review. first question : what are the conditions to ensure an appropriate level of investor protection, and in particular, what are the consequences of the increased " retailization " of hedge funds? a second question is the future of the hedge fund industry. it is the nature of technological progress to spread in a way that the profits it creates to be competed away. replicating hedge funds strategies – at lower costs – seems to be expanding. m. hsieh will tell you more about it during the panel discussion. a third and important issue relates to the evolving relationship between banks and hedge funds. this relation is complex

jorgovanka tabakovi : only sustainable growth and development lead to a sustainable future address by dr jorgovanka tabakovi, governor of the national bank of serbia, at the first western balkans sustainable investing forum, national bank of serbia, belgrade, 17 november 2022. * * * accompanying presentation of the speech welcome to the national bank of serbia and the first western balkans sustainable investing forum, i hope the first of many. first of all, i would like to greet my colleague and friend igor mirovi, the president of the provincial government. at his initiative, the development and guarantee fund of vojvodina and the guarantee fund of the republic of srpska founded the business association " green navigator of the western balkans ". all forms of cooperation, especially those aimed at strengthening renewable energy sources and agriculture, are an important element of sustainable growth. i also welcome mr. alessandro bragonzi, head of regional representation for western balkans at the european investment bank ( eib ). the eib is the eu's climate bank, but through its activities it also supports the green transition in the western balkans. the cooperation between the nbs and the eib is particularly dynamic in the area of disbursement of apex loans, with the nbs acting as serbia's agent. apex loan funds are intended for entrepreneurs, small and medium - sized enterprises, companies of medium market capitalisation, priority projects and local self - government, for projects in infrastructure, protection and improvement of the environment, energy efficiency, health and education. around 9, 600 new jobs are to be opened throughout serbia within the projects that have been financed so far from the apex loans, and i am especially happy about those that support the employment of young people in serbia as well as the development of education, because there is no substitute for knowledge. ladies and gentlemen, it is evident that not all growth is equally good. only sustainable growth and development lead to a sustainable future. and if growth is not sustainable, investments cannot be sustainable either. the reverse is also true. that's why when we talk about sustainable growth, we can't help but include the following questions : green economy, digital economy, and issues of various types of equality. i will continue about : awareness of the importance of " green " transformation necessity of taking a gradual approach in that process 1 / 4 bis - central bankers'speeches nbs activities in the area of sustainable investing i will start by stating that