bank of japan ’ s february review of monetary and economic trends in japan bank of japan, monthly economic review, 18 / 2 / 97. a moderate economic recovery continues in japan as private demand shows increasing firmness. with respect to final demand, public - sector investment has decreased while net exports are on an increasing trend. housing investment has remained at a high level and business fixed investment is increasing steadily. while growth in personal consumption has been moderate on the whole, passenger car sales, which have a strong influence on production, have accelerated significantly. meanwhile, inventories on the whole are at appropriate levels. in these circumstances, industrial production has recently increased at a somewhat fast pace and labor market conditions have continued to improve moderately. meanwhile, prices have stopped declining, and monetary aggregates continue to grow at 3. 0 - 4. 0 per cent. with regard to personal consumption, sales at department stores and supermarkets are improving moderately, albeit with some fluctuations. outlays for travel have remained firm. growth in sales of electrical appliances has become somewhat moderate as the pace of expansion in personal computers and cellular telephones decelerated. passenger car sales have recorded buoyant two - digit growth year - to - year for four consecutive months since october 1996. among leading indicators of business fixed investment, machinery orders are increasing steadily on average, although they are expected to show a decline in the first quarter of 1997 as a reaction to the large increase recorded in the fourth quarter of 1996 in both the manufacturing and non - manufacturing sectors. construction floor area has also continued to pick up moderately. with respect to housing investment, housing starts have remained strong reflecting low interest rates and reasonable housing prices. they recorded a high seasonally - adjusted annual rate of over 1. 7 million starts in the fourth quarter of 1996, partly reflecting the rise in orders ahead of the consumption tax rate hike. regarding public - sector investment, public works contracted showing developments in orders have decreased significantly since autumn 1996 compared to the high level recorded in the previous year which reflected the large economic stimulus package. as for actual implementation of public works, with a time lag after orders, the seasonally adjusted level of shipments of related goods has been decreasing since autumn 1996 after having increased until the summer. real exports have recently shown an increasing trend as the effects of the yen ’ s depreciation since summer 1995 have gradually permeated. meanwhile, the increase in real imports has slowed, also reflecting the depreciation of the yen. as a result

##ence goes beyond technology, it also encompasses governance, company culture and business processes. given the extensive interlinkages and interdependencies in the financial system, it is obvious that 1 / 2 bis central bankers'speeches markets ’ overall cyber resilience depends not only on the resilience of each individual market actor but also on that of interconnected market infrastructures, participants and service providers. the eurosystem cyber strategy for financial market infrastructures following the increase in both the frequency and severity of cyberattacks over the last few years, legislators, regulators and standard setters have issued legislation and guidance on cyber security at national and international level and at cross - sectoral as well as sector - specific level. let me briefly mention three initiatives. first, in 2016, the ec adopted the directive on security of network and information systems ( the nis directive ). its aim is to bring the cybersecurity capabilities of operators of essential services to the same level of development in all the eu member states and to ensure an efficient exchange of information and good cooperation on the topic throughout the eu. second, at international level, the g7 countries have drawn up a set of fundamental elements of cybersecurity for the financial sector, as well as three further recommendations on the effectiveness of cybersecurity assessments, third - party risks, and coordination with other critical sectors. third, with a key focus on financial stability, the cpmi - iosco published a principles - based “ guidance on cyber resilience for financial market infrastructures ” in june 2016. supplementing the “ principles for financial market infrastructures ”, it provides additional detail related to the preparations and measures that financial market infrastructures should undertake to enhance their cyber resilience. in recognition of the escalating cyber threats, the legislative and regulatory guidance and the required paradigm shift, the eurosystem ’ s overseers have launched a strategy for cyber resilience in relation to financial market infrastructures. this strategy – which will be explained in more detail at agenda item 3 – is built on three pillars. the first pillar refers to the cyber resilience of individual financial market infrastructures. the second pillar refers to the resilience of the financial sector as a whole. the third pillar highlights the importance of establishing a forum which brings together market actors, competent authorities and the cybersecurity service providers. this brings me to the third and final objective of today ’ s meeting. creation of a