takehiro sato : maximizing the potential of japanese government bonds ( jgbs ) as global financial assets – recent initiatives to improve the market infrastructure for jgb settlement speech by mr takehiro sato, member of the policy board of the bank of japan, at the international bankers association of japan, tokyo, 27 february 2014. * * * introduction it is a great honor to have this opportunity to speak at the international bankers association ( iba ) of japan. as an association of international financial institutions serving japan ’ s financial markets, iba has an impressive track record in facilitating exchange of views among member financial institutions and fostering dialogue with the relevant authorities. through those activities, iba greatly contributes to japan ’ s economy as well as the development of financial markets in japan. i pay my respect and extend my gratitude for constant efforts by the iba members. today, i will talk about the payment and settlement services provided by the bank of japan. in particular, i will focus on the future services for the settlement of japanese government bonds ( jgbs ). the bank has long put a great deal of effort into the development of payment and settlement systems. currently, we are carrying out a major project to renew the bank of japan financial network system or the boj - net, which forms an essential part of japan ’ s payment and settlement systems. i will talk about this project in more detail later on. to leverage a new capability in the new boj - net, we are discussing with the market participants, including several iba members of course, the possible extension of the bojnet operating hours. after those payment and settlement issues, i will close my speech with some remarks about the bank ’ s recent conduct of monetary policy. i. role of the bank of japan in payment and settlement systems the bank of japan plays a multi - faceted role in japan ’ s economy. it is responsible for monetary policy and, at the same time, as a bank for banks, it provides banking services and maintains the stability in the settlement of funds and securities in japan. the bank plays a multi - faceted role in the field of payments and settlements, too. first, the bank provides account and settlement services for the japanese yen and jgbs. second, the bank encourages the operators of private - sector payment and settlement systems to maintain and enhance the safety of their services, an important activity which is commonly called “ central bank oversight. ” 1 third, the bank cooperates with market

the book “ personal finance in your hands ”, conceptualised for high schools, incorporated as an elective subject in high - school curriculum, and distributed at schools, training of economics teachers also included. this difficult process has consumed considerable human and financial resources, but the interest aroused fully justify it. education institutions, and students that will have long term benefits from financial education, have positively expected this initiative. along with them, the whole economy will also benefit. financial education and financial stability are two important issues and two examples of the avant - garde policies pursued by the bank of albania. these policies have in common the fact that their effects on changing the behaviour of individuals, businesses and overall economy are gradual and life - long. in both cases, what matters is the side of movement, the direction in which these policies lead the economy. credibility to institutions, confidence in the financial system and financial literacy help people not only in managing their financial affairs and raising their standard of living, but also in proposing and supporting the right policies. they also contribute to sustainability and efficiency of the financial system for the whole economy. improved macro - financial management and financial education help each - other for a successful journey. today ’ s activity, organised by both central banks of one nation, is also part of this journey. currently, we should keep our focus on and harmonise the central banks ’ positions to ensure macro - financial stability, as the only way that enhances the credibility of economies in our region and improves the foreign investment climate. cooperation and coordination of policies of central banks and financial authorities for creating a regional market, will increase the value of existing investments and of our economies in general. harmonisation of economic agendas to maintain macroeconomic and financial stability, increase opportunities for regional cooperation and open new joint projects, is the only way for promoting new private investments and attaining the real convergence of our economies. ladies and gentlemen, let me once more congratulate you for organizing this event and for your good work done so far. it is wonderful to see so many individuals and organisations working for one goal, for economic education of albanians, for boosting confidence in financial institutions, for good management of the economy nation - wide, for making the best choices to ensure future economic prosperity. bis central bankers ’ speeches