cent. this was a marginally smaller see carmen m. reinhart and kenneth s. rogoff, “ this time is different : eight centuries of financial folly ”, sns, 2010. bis central bankers ’ speeches improvement than we were counting on in july ( unemployment 0. 1 of a percentage point higher ). cpi inflation was 3. 3 per cent in july. cpif inflation ( 1. 6 per cent ) and cpif inflation excluding energy ( 1. 1 per cent ) were much lower. all of these outcomes were marginally ( 0. 1 of a percentage point ) lower than expected. i said at the monetary policy meeting in july that there was still a risk that inflation would increase more than we were expecting, particularly in 2012 and 2013. this was partly because inflation had recently been held back extra hard by the strengthening of the krona. i also pointed to the risk of rising energy and commodity prices in the world market, higher wage increases than expected due to pressure in the labour market, and higher inflation and wage expectations due to the high cpi inflation. but so far, inflation has been marginally lower than expected and energy and commodity prices have fallen. the outlook for 2012 and 2013 depends, for instance, on developments in international economic activity and on the result of the coming wage bargaining rounds in the labour market. the financial markets during the summer developments in the financial markets have been dramatic over the summer. share prices, government bond yields and exchange rates have fluctuated substantially. this turbulence is one factor that could have significance for future forecasts. this is essentially due to renewed concern over sovereign debt problems in the euro area and the united states. focus has primarily been on four issues : public finances in greece, the risk of problems spreading to spain and italy, potential problems in the european banks and the management of the debt ceiling and public finances in the united states. new support package for greece at the beginning of the summer there was particular concern over developments in greece. after a series of meetings of various policy - making bodies within the eu as well as a vote of confidence and a decision on budget - strengthening measures, structural reforms and the sale of state - owned companies in the greek parliament it was decided in mid - july that greece would receive a further support package from the euro area and the imf. this led to a slight fall in the yield on greek government bonds from their extremely high levels ( see figure 11 ). spain and italy in the danger zone at the

jwala rambarran : strengthening the national financial safety net – a new agenda for the deposit insurance corporation of trinidad and tobago remarks by mr jwala rambarran, governor of the central bank of trinidad and tobago and chairman of the deposit insurance corporation of trinidad and tobago, at the 25th anniversary celebrations of the deposit insurance corporation of trinidad and tobago, port of spain, 5 november 2012. * * * ladies and gentlemen, on behalf of its board of management and staff, i extend a sincere welcome to the 25th anniversary celebrations of the deposit insurance corporation ( dic ). anniversaries have a special significance for society. children love to celebrate their birthday each year, and society often honours great people with a holiday on their birthday, even long after they have departed into the history books. wedding anniversaries are also significant shared milestones. ladies and gentlemen, the dic ’ s “ silver ” anniversary celebration comes at a time when the financial safety net has once again become a topic of prominent discussions, both at global and national levels. indeed, i find it almost uncanny how the conditions impacting recent disruptions in trinidad and tobago ’ s financial safety net, almost mirror the circumstances surrounding the origins of the dic some 25 years ago. regulatory failure back then, you may recall that the trinidad and tobago economy was painfully adjusting to the end of its second energy boom. the sharp contraction of economic activity, declining incomes and job losses partly contributed to the failure of many non - bank financial institutions in the mid - 1980s. but the more causative factors for the non - bank crisis seemed to be absence of regulation, weak managerial competence, poor or non - existence credit risk management and concentrated lending. as charles de silva opined in his october 1990 article on “ the law and the central bank : issues and implications for banking supervision in trinidad and tobago ”, that was presented at the 22nd annual conference of the then regional programme of monetary studies, “ the non - bank crisis in trinidad and tobago immediately called into question the capacity and competence of the regulatory authority. but although there were limitations in regulatory capacity, the major and more decisive weaknesses were readily seen to be the inadequacies of the legislation itself. ” unfortunately, the collapse of several finance companies and trust and mortgage finance companies was not averted. it is difficult, however, to know how long it took the officials at the ministry of finance and the central bank to recognise the impending danger of the sheer size and rapid growth