dimitar bogov : policy nexus and the global environment – a new consensus emerging from the crisis? address by mr dimitar bogov, governor of the national bank of the republic of macedonia, at the 2nd research conference “ policy nexus and the global environment – a new consensus emerging from the crisis? ”, skopje, 26 april 2013. * * * ladies and gentlemen, dear guests, let me wish you welcome on our second research conference that we usually organize on the day of the monetary independence anniversary of the republic of macedonia. the subject of this year ’ s conference we believe is highly topical, in line with the ongoing lively discussions among central bankers, research and academic institutions worldwide. the global economy in the last couple of years undergone remarkable changes, both from institutional and policy design setup. we witnessed financial market turbulences, banks failures and sovereign debt crisis with strong contagion around the world economy that was almost unique by its size, and the global economy is still struggling to recover. after five years of global crisis we could say that we experienced a lot, and hopefully, we learnt a lot. one of the main lessons of the crisis was exactly related to the topic of the conference – the need of policy nexus as a kind of a consensus emerging from the crisis. what is the policy nexus about? at the initial stage of the financial crisis the importance of the macro prudential policies in the overall policy mix was highlighted and therefore, a lot of attention has been put on the monetary and macro prudential policy nexus, conveying the main message that the price stability and financial stability are interconnected. with the appearance of the sovereign debt and banking crisis in the last couple of years in the euro area, it was quite obvious that the poor public finances management could also impose threats to the financial system. the financial instability and weak public finances can potentially have adverse effects on the financial markets, imposing distortions in the monetary policy transmission mechanism, and resulting in serious macroeconomic imbalances. the required policy nexus is becoming a necessary precondition for designing and implementing a sound macroeconomic management. under situation that was more specific than usual, when the role of traditional instruments was limited, the monetary policy turned to unconventional policy measures. although the monetary policy in the region has not been constrained by zero lower bound on interest rates, the central banks also turned towards unconventional monetary policy tools, having in mind the potential risks of repeated deterioration of the external imbalances and inflationary pressures or

collaboration with cyberport to unlock the full potential of tailored gena. i. applications catering to the unique needs of hong kong's financial market. this innovative platform allows banks to pilot gena. i. use cases in a risk - managed environment, complete with technical support and targeted supervisory feedback. as we move forward, the hkma will take an interactive and iterative approach, carefully evaluating the results of the sandbox trials and sharing best practices. we will also provide additional supervisory guidance as necessary to ensure that the adoption of gena. i. promotes responsible innovation, while maintaining the integrity of the banking sector. so, what about " data - driven "? the aim here is to harness the power of data to reinforce hong kong's leading position as a smart digital economy, both locally and globally. to do that, open data flow is key. domestically, our two initiatives - commercial data interchange and interbank account data sharing - will continue to integrate data networks which used to run in isolated silos. this will help simplify kyc and credit risk assessments, thereby helping smes secure bank financing more easily, faster, and hopefully more cheaply. meanwhile, we are working closely with the mainland to facilitate cross - boundary data sharing, first by expediting the pilot for cross - boundary credit referencing with mainland credit reference platforms. this will allow smes with cross - boundary operations to use this full set of credit data to enhance their access to bank financing. internationally, we are collaborating with the bis innovation hub on project aperta, which aims to connect domestic open finance infrastructures across jurisdictions, to enable secure and consumer - consented sharing of financial data. seamless cross - border data portability will allow consumers to open overseas accounts much faster, and speed up international trade at reduced cost. closing what the future may hold for us is uncertain, but we are committed to charting the next phase of financial innovation with continuing efforts in the two areas i just talked about : tokenisation and ai. ultimately, we envision a borderless fintech ecosystem where innovation will drive business development. to realise this vision, we must dream big and push the boundaries of what is possible. let's all embrace the spirit of innovation and collaboration as we move forward together. 4 / 5 bis - central bankers'speeches if we liken our fintech journey to an orchestra playing a symphony, we are about to begin the next movement of our fintech symphony. we don't know whether