dimitar bogov : activities and developments in eu payment systems address by mr dimitar bogov, governor of the national bank of the republic of macedonia, at the seventh international conference on payment and securities settlement systems, ohrid, 6 – 9july 20414. * * * ladies and gentlemen, esteemed colleagues, it is a great honor and privilege to open the seventh conference on payment and securities settlement systems. this conference has had an international character for several years now, and this year, the list of participants and guests is even broader. apart from the national bank of the republic of macedonia, we must give due credit to the central bank of the netherlands and the central bank of portugal for making this conference a success. without their support and active participation, the quality of the conference would not be at the same level. therefore, i would like to acknowledge the traditional cooperation of the national bank of the republic of macedonia with the central bank of the netherlands and the central bank of portugal, and at the same time to salute this year ’ s participation of the representatives of the central banks from central, eastern and southeastern europe, as well as representatives of the committee on payment and settlement systems at the bank for international settlements, euroclear and commerzbank. to us, the perennial active participation of the representatives from the domestic payment system is of great importance as well. esteemed colleagues from the financial sector! allow me to tackle several important aspects that will be included in our discussion in the days ahead of us. first, the conference will be opened by promoting the red book of the payment, clearing and settlement systems of the republic of macedonia, which was issued at the end of last year, in cooperation with the committee on payment and settlement systems at the bank for international settlements ( bis ). this publication is important for the republic of macedonia because it further improves the understanding, at both national and international level, of the functioning of the payment and securities settlement systems. at the same time, this project promoted the process of harmonization of the payment statistics of the national bank with the payment statistics of the european central bank, which is an ongoing process that includes other banks, and is expected to facilitate complete methodological unification and readiness to disseminate information in accordance with the requirements of the statistical system of the european central bank. allow me on this occasion to welcome mr. emanuel freire, who will promote the red book of the republic of macedonia and present the activities of the

of the statement of the nobel prize winner robert lucas that “ the central problem of depression - prevention has been solved, for all practical purposes ” and the statement of ben bernanke in his famous speech named as “ the great moderation ”, where he claims more than lucas that the modern macroeconomic policy has solved the business cycle problem or more precisely it has reduced the problem to a point that it is a mere shade rather than the most important economic question. daniel k. tarullo, member of the fed board of governors finds the reasons in replacing the basic regulatory framework established after the great depression 1929 – 1933, which mostly limited the commercial banks to traditional lending activities, with the regulatory framework that in the 1970s started to install deep changes in the organization and regulation of the financial markets, culminating with the adoption of the gramm - leach - bliley bill in 1999. he says that “ with the innovations, the traditional commercial banking business model was put under strong pressure on both sides : on the liability side in the balance sheet of the banks in the form of more attractive savings instruments, such as the funds for investing on the money market, and on the assets side, with the growth of public companies and international competition ”. until the end of the century the restriction cluster on the commercial banks from the great depression era was replaced with a regulatory setting in which they could operate on a national level, to involve in a much broader set of activities and to practically join with every kind of financial companies. tarullo says, that is how the highly complex financial holding companies were started... the independent investment banks grew in a group of big, complex and highly indebted companies... the financial engineering was quickly changing the character of the entire financial services sector. securitization and accompanying instruments united the capital markets and traditional lending activities, fueling the growth of the so - called shadow banking system. allan greenspan in his latest paper “ the crisis ” wrote about the reasons for it : a. “ it was the global proliferation of securitized, toxic u. s. subprime mortgages that was the immediate trigger of the current crisis ”. but, he says : “ the roots of the crisis reach back, as best i can judge, to the aftermath of the cold war ”. later he explains actually the large increase of the aggregate demand which came from, formerly the third world nations, especially china, which replicated the export - oriented model of the