security up to a certain limit of the collateral value. it is likely that the remaining stock of non - secured loans will become more expensive to finance. the use of gilt - edged bonds may lead to lower financing costs for the issuing mortgage institutions if these institutions do not have to bear the cost of the special supervision that gilt - edged bonds require. in my opinion, the increasing competition will promote new forms of funding that make more efficient use of equity. securitisation one financing form that permits the efficient use of equity is securitisation. securitisation involves a given loan stock with accompanying collateral being taken off the balance sheet of the mortgage institution and sold to a separate company specially created for this purpose ( known as a special purpose vehicle ). this separate company is then financed through issuing bonds on the market. the special purpose vehicle has a clearly defined risk scenario and does not pursue any business activities other than acting as holder of the specified loans. consequently, the company is not subject to the capital adequacy regulations that apply for mortgage institutions. securitisation has several advantages, the main one being that it enables mortgage institutions to reduce their share of equity and thereby their total financing cost, since equity is a more expensive source of financing than loan financing. furthermore, mortgage institutions can streamline their operations by selling claims and by specialising in issuing loans. securitisation can also increase the stability of the financial system as credit risks can be transferred from institutions subject to regulation to players that are less sensitive to heavy credit losses. securitisation using a special purpose vehicle located in sweden is permitted, but in practice it is unprofitable since, under the current regulations, the special purpose vehicle will be subject to the same capital adequacy regulations as the mortgage institutions. a proposal to improve the conditions for securitisation in sweden is currently being prepared by the ministry of finance. the budget bill for 2001 states that the government intends to put forward a bill on improved conditions for securitisation during autumn 2000. to date, three swedish mortgage institutions, sbab, seb - bolan and bokredit have undertaken securitisation via special purpose vehicles abroad. on five occasions between 1990 and 1994, seb securitised mortgage loans totalling sek 12 billion, and in june 2000, the same bank securitised mortgage loans worth approximately sek 8. 5 billion. sbab securitised mortgage

to broadening the base for the recruitment of new managers. · besides altering the ways in which we communicate monetary policy in order to reach a wider public, during these years we have run an educational programme for upper secondary teachers and developed an internet game called stargold. at present we are working on an idea for a competition in civics between classes in sweden's upper secondary schools. evaluating all this is not an easy matter, particularly when one is fully engaged in it. i believe, however, that our efforts to make the riksbank more transparent have worked well. to use the terminology of the bis report, we have certainly become more " outward - looking ". it has been more difficult to break what the same terminology refers to as " upward - looking ". it is not so easy to build up an efficient cooperation and sense of responsibility, unencumbered by prestige, throughout our organisation. it is gratifying that among students in our subject, we are the most popular workplace in the public sector. in the league of all workplaces in sweden, we rose seven pinholes last year to fourteenth place. but we are not content with this and aim for a further improvement. the tasks as such, the proximity to economic policy and the international dimension should be sufficiently attractive. if, in addition, we can create an environment in which people can grow and feel they are an important part of the organisation, then i believe we can do still better. there are many connections between an open, clear relationship with the outside world on the one hand and our internal work on the other. distinct goals have helped to focus internal operations and tighten the analysis. by making things less hush - hush we have also made it possible to include more people in a realistic discussion of monetary policy, for example. we are now open to criticism of a sharper and more specific nature and that has been good for us. the riksbank's motto, hinc robur et securitas ( hence strength and security ), which used to allude to our earlier functions as the producer of notes and coins, for example, now refers at least as much to our analytical competence, the accuracy of our analyses and our efficiency as an authority. management with an executive board one consequence of the new riksbank act, effective from the beginning of 1999, was that a new executive board, consisting of six members, is collectively responsible for all the bank's operations. this was a clear break with