a solid basis for loan qualification is and should be exclusively past and expected fully declared net - income both for companies and for individuals. this can be vital information for loan approval and interest rate pricing. by increasing financial literacy of potential financial products consumers in this area, we can significantly influence the decrease of so called “ gray economy ” with a positive impact on tax collection, budget deficit and accuracy of economic data in the system, and therefore, future efficiency of economic policies. that is why it is very important in this respect as well, to increase financial literacy so as to make people fully understand and realize that fully declared and legal cash - flow is a primary prerequisite for individuals and companies to successfully qualify for banking loans. another, similar aspect is making people fully understand the role and significance of credit bureaus. by obtaining information from credit bureaus on total borrowing and bill paying habits for corporate and individuals, lenders can obviously better assess credit worthiness of a potential borrower. this can in turn influence the decision to lend or not to lend, and can affect the interest rate and other terms of a loan. consumers must be aware that interest rates are not the same for everyone, and are, as a rule, determined by risk - based pricing. obviously, highly leveraged consumers with poor credit repayment histories will pay a higher annual interest rate than consumers with lower overall debt and good payment habits. full awareness of these simple rules in finance and maintenance of good credit profile in a credit bureau can potentially decrease the overall leverage in the economy, keep the npls under control, help avoid the creation of asset bubbles and avoid unnecessary overdue payments court procedures. again, financial literacy in this domain can protect both the lenders and the consumers, avoiding unnecessary shocks to the financial systems as a whole. closely related is understanding the importance of full legalization and registration of real estate properties as a common collateral for mortgage lending. again, this is an area that should be very important for financial literacy and education providers. the task is particularly vital in see and other transition and post - transition countries where public awareness of the importance of registering real estate is not so developed in comparison to the rest of europe and developed world economies. lack of understanding and the significance of real - estate registration, can have serious economic repercussions ; most importantly, the inability to guarantee any obligations with one ’ s property. this would pose a particular problem for enterprises as loans are, in most cases, one of the most crucial

you increasingly have bridges between the virtual world and the real world and then there is a collapse in this virtual world, it could drain liquidity from the real world. this then becomes a concern for the central bank. take the example of ccps : if one were to offer future contracts on such vcs these would then have to be cleared. but ccps have a single fund of default and if that fund were not sufficient then that would engage the responsibility of other clearers. that would mutualize risks that are emanating from those virtual currencies. the question then arises whether we shouldn ’ t have a clearer segregation between the real and the virtual world. the same goes for the imported credit risk that could come along and the question of collateral. these are the areas where we have direct responsibility as a central bank. what is relevant to us is that we protect the functioning of our open market economy. at the same time, if someone wants to play casino, let him do it, but then we shouldn ’ t mutualize losses with the rest of the society. 1 / 3 bis central bankers'speeches what tools do you have to keep this virtual world at bay and do they need reinforcement? our existing frameworks for monetary policy clearly don ’ t accept these assets as collateral and we will also not accept them to enter our existing platforms like target - 2 – these rules are already in place. the question is : should we go beyond? if banks were to start leveraging, i. e. giving loans to finance such activities, then it would obviously be of concern for us, not only from the point of view of the risk management as a supervisor, but also in the view of our role to support financial stability and in view of our functioning, because we conduct monetary policy through banking system so we need a sound banking system. would it help if also in the market infrastructure we would have the obligation to segregate accounts or to have higher capital retention? those ideas are typical tools that are at disposal of either the central bank or the supervisor or macroprudential authorities and we might have to take a look whether they are also applicable to those virtual currencies and whether the time has come to go that way. but since some of those vcs have no national base, but rather define themselves as being globalized it would be best to have a globalized response and that ’ s why the g20 is looking into the matter. in what areas do you foresee