you know, is a textbook example of the “ moral hazard ” problem. central banks also face the problem of moral hazard. instead of contributing to financial system stability, the “ lender of last resort ” function of central banks could end up threatening that very stability by encouraging excessive risk - taking by banks. also, in terms of macroeconomic stability, it is sometimes pointed out that the recent financial crisis was partly attributable to what is sometimes referred to as the “ great moderation ” from the 1990s to the mid - 2000s, a period characterized by a favorable combination of low inflation and high growth, and a time of too much confidence in central bank policy, which contributed significantly to the moderation. as moral hazard is one of the most important topics of discussion for monetary policy, financial system stability, and regulation and supervision, i will return to it toward the end of my speech. iii. current state of the global economy and financial markets next, i would like to turn to the current state of the global economy, with particular reference to its effects on the business of insurance companies. developments in the global economy following the failure of lehman brothers it is now three years since lehman brothers collapsed in september 2008, triggering the financial crisis. developments in the global economy thereafter can be summarized into the following three points. first is the fact that the global economy has managed to prevent a depression that might well have been as severe as the one witnessed in the 1930s. this significant achievement can be attributed to the effective measures to stabilize the financial system and to the bold monetary and fiscal policy after the failure of lehman brothers. second, the global economic recovery has been bifurcated so far. emerging economies started recovering relatively soon after the crisis and have continued to post high growth. in contrast, given the significant downturns of advanced economies after the failure of lehman brothers, their pace of recovery thereafter has been slow. bis central bankers ’ speeches third, the downward pressure exerted on advanced economies by the repair of balance sheets is a root cause of their sluggish recovery. the global credit bubble in the mid - 2000s was incredibly large. when such a huge bubble bursts, balance sheets have to be repaired, or in other words, excesses in stock and corresponding debt have to be adjusted. furthermore, economic activity is restrained for the duration of that process. the sectors requiring balance - sheet adjustment differ according to the country : in the united states, it has been needed in the household and government sectors ; in

dimitar bogov : payment systems and market infrastructures speech by mr dimitar bogov, governor of the national bank of the republic of macedonia, at the 10th jubilee edition of the nbrm's conference on payments and market infrastructures : drivers of european payment integration - innovations and cooperation, ohrid, 5 - 7 july 2017. * * * distinguished guests, ladies and gentlemen, it is a great pleasure for me to address you on the 10th jubilee edition of the conference on payments and market infrastructures. organizing this conference has become a valuable tradition of the national bank of the republic of macedonia. we take great pride for being able to host it all these years. this notable anniversary is an opportunity to look back and reflect on the beginnings, to honor the achievements we have made so far and set the road for future growth and development. the history of the conference dates back to 2008 set as a joint project with de nederlandsche bank who is our partner in this journey from its very beginning. i feel the need to credit for it the enthusiasm of toni mircheski, deputy head of the payment systems department within the nbrm, mr michiel van doeveren and mr paul osse from de nederlandsche bank for initiating and organizing the very first conference. three years later, banco de portugal came on board thanks to mr rui pimentel, to jointly create a conference that certainly grows into a recognizable brand name, set with the aim to inform of all relevant payment - related matters, to share knowledge and to educate, to influence and last but not least to network and socialize. payment systems and market infrastructures – why this topic in the first place? there is no doubt that payment systems comprise vital part of countries ’ economic and financial infrastructures. however, it was only the last two decades or so when this issue gained in topicality, concerning both, service providers and policymakers and central banks. this is because of the new global landscape, which shaped by the streams of globalization, the dramatically rising volumes of payments and the advancing fintech innovation has returned payment systems to the focus once again. with their safety, resilience and efficiency becoming critical to the financial stability and the well - functioning of the economy as a whole. we started this conference as domestically oriented, having the domestic financial sector as target audience, to later on move to expand internationally from southeastern and central and eastern europe to the black sea region and the middle east with