is complex. while it must be evidence - based and outcomes focused, it does require finely - balanced judgement to operate in the grey areas 1 / 5 bis central bankers'speeches between the two ends of this spectrum of risk. insurers must operate in line with the domestic and international regulatory regime. our riskbased supervision of insurance firms is delivered in line with this regime, anchored by our prism3 methodology. it strives to deliver effectively in ensuring that the system as a whole is, and individual firms operating within it are, appropriately resilient. it seeks to ensure that regulated firms : have sufficient financial resources ( capital and liquidity ), including under a plausible but severe stress ; have sustainable business models to allow them to prosper through the economic cycle ; are well run, appropriately governed, have effective risk management and control functions and appropriate cultures ; and can recover if they get into difficulty, and we can resolve them without significant externalities or taxpayer support if they cannot. a more resilient system is better able to withstand shocks and continue to support the economy and its customers in good times and bad. it becomes less of a transmission mechanism for shocks and, potentially, plays more of a smoothing role in reducing volatility. in recent years, volatility in the cost of insurance in ireland has undoubtedly caused challenges for insurance customers. i expect the boards and management of regulated firms to ensure that their firms are sufficiently resilient. i also recognise and support system wide efforts to address some of the factors causing volatility and higher insurance costs than in other comparable countries. these efforts include the work of the cost of insurance working group. an associated recommendation of the personal injuries commission4, chaired by nicholas kearns, is for the establishment of judicial guidelines for appropriate general damages for various types of personal injury. such guidelines should lead to greater levels of consistency in the assessment of general damages in ireland, which should help in better enabling the domestic non - life insurance sector to support its customers. recovery & resolution planning recovery and resolution planning for insurance firms also requires further work. the regulatory regime for insurance is not sufficiently robust or consistent across europe. this issue is accentuated by the inconsistency in insurance compensation schemes across europe – an issue for both home and host supervisors. as well as pushing for further developments at a european level, the central bank is driving firms to improve how they execute recovery planning as well as advancing our own approach to resolving insurance firms. culture culture is also

dimitar bogov : seventy years of central banking activities in the republic of macedonia speech by mr dimitar bogov, governor of the national bank of the republic of macedonia, at the ceremony of marking 70 years of central banking activities in the republic of macedonia and order award by his excellency dr gjorge ivanov, president of the republic of macedonia, skopje, 19 october 2016. * * * honorable president of the republic of macedonia, your excellency, dr. gjorge ivanov, distinguished members of parliament and representatives of the government, honored excellencies, esteemed guests, ladies and gentlemen, it is my pleasure and honor, on behalf of the national bank of the republic of macedonia and on my own behalf, to express my sincere gratitude to his excellency, the president dr. gjorge ivanov for the high recognition he has awarded to the national bank tonight. i would also like to thank all of you for being present at the celebration that marks this great anniversary. it is a great honor to be awarded the “ order of merits for macedonia ” by the head of state, in the year when the national bank celebrates 70 years of central banking activities in the republic of macedonia. this award is a great recognition for the overall work of the national bank. it is strong confirmation of the enormous contribution of the bank to the state all these decades – as a central institution of the monetary system and a key pillar of macroeconomic stability. these 70 years, the national bank has gone through various stages of transformation and evolutionary development. it has operated in various systems of social and political order. over the years, it changed both its name and address. it has gradually acquired competencies and built its functions. with the constitution of independent macedonia and the declaration of monetary autonomy, it established itself as an institution – carrier of the functions of a modern central bank. today, i can proudly say that the national bank has grown into a modern and highly professional institution, enjoying credibility domestically, and appreciated and recognized internationally. the national bank has been maintaining price stability in the macedonian economy for 20 years through a stable exchange rate. the inflation rate in the past 20 years has averaged about 2 %, which is a level comparable to developed countries, placing us among the most successful economies in transition. the financial stability has been successfully maintained by promoting sound, safe and competitive banking sector that successfully defy risks and delivers robust credit growth. by achieving these two legally delegated objectives, the national