##evates professionalism in the banking industry. i am most inspired by the theme of this year ’ s conference. it is pragmatic, realistic and aptly sums up the importance of talent management as we steer through the evolving financial landscape. topics such as “ asia 2. 0 : leading the next wave of growth ” and “ global workforce strategies ceos deploy to achieve leading business result ” would be significant especially for hr practitioners managing multinational companies in asia. besides, topics such as “ are our graduates employable? ” will also be an interesting meeting point for hr practitioners and educators. i wish you an insightful and productive discussion. i trust that today ’ s conference is merely another step in the journey of intellectual quest that will continue long after this conference has ended. bis central bankers ’ speeches

be supported by foreign demand, the very low short - term interest rates as well as our non - standard measures. at the same time, downside risks relate in particular to a renewed intensification of tensions in euro area sovereign debt markets and their potential spillover to the real economy. further increases in commodity prices may also hamper economic activity. euro area annual inflation was 2. 7 % in march, unchanged from the previous three months. inflation is likely to stay above 2 % in the course of this year, because of recent increases in energy prices and indirect taxes. the governing council continues to expect annual inflation rates to fall below 2 % in early 2013. looking forward, in an environment of modest growth in the euro area and well - anchored inflation expectations, underlying price pressures should remain modest. risks to the outlook for price developments are broadly balanced. upside risks could stem from higher than expected oil prices and further indirect tax increases ; downside risks could arise from weaker than expected economic activity. let me stress that the governing council will pay particular attention to any signs of passthrough from higher energy prices to wages, profits and general price - setting. it is essential that medium - term inflation expectations for the euro area economy continue to be firmly bis central bankers ’ speeches anchored in line with the governing council ’ s aim of maintaining inflation rates below, but close to, 2 % over the medium term. the monetary analysis, in particular the subdued pace of underlying money growth, confirms the prospect of price developments remaining in line with price stability over the policy - relevant horizon. money and credit data up to february point to a stabilisation of financial conditions. at the same time, the demand for credit remains weak in the light of still subdued economic activity and the continuing process of balance sheet adjustment in non - financial sectors. i consider it of crucial importance that banks strengthen their resilience further, including by retaining earnings and by retaining bonus payments. the soundness of banks ’ balance sheets will be a key factor in facilitating both an appropriate provision of credit to the economy and the normalisation of their funding channels. the effectiveness of the ecb ’ s recent non - standard measures i would now like to turn to the effectiveness of the latest eurosystem non - standard monetary policy measures, in particular the long - term refinancing operations ( ltros ). let me first of all be clear about why we implemented the three - year ltros. as you will remember, the second half