the forces that may cause it to depreciate. since the new york fed began to highlight the need for a focus on culture reform in financial services, measurement has consistently been raised as a challenge. while measuring culture may not be as straightforward as measurement approaches for more traditional assets and risks, it is possible to gain valuable insights through a multi - layered and patient approach. through the use of surveys, interviews, focus groups, behavioral analytics, network analyses, and board effectiveness assessments, firms can triangulate from multiple inputs and develop a view of how high or low their cultural capital is, both in an absolute and relative sense. at a 2017 conference, hosted by the new york fed, representatives from across the industry came together to discuss how boards of directors assess their firms ’ cultures, hold management accountable, the benefits of data and benchmarking, and finally, the role of performance management and incentives. 4 since then, several firms have started to use big data to perform network analysis to understand how culture is transmitted through an organization. others have further honed their ability to gather qualitative data and interpret it in new ways. there is a greater recognition that there are no simple and straightforward metrics to tell them where they stand vis - a - vis cultural capital. 5 rather, these firms are regularly experimenting with new ways to identify patterns within complex systems that are continuously evolving. a number of firms have recognized that the data they gather must be contextualized. cultural capital is not a single statistic ; one part of a firm could have generous stores of it, while another department or geography requires more focused investment and attention. from the accumulation perspective, building cultural capital means investing in the way the organization approaches everything it does, including defining its purpose, setting its business strategy and risk appetite, training, communications, decision - making, prioritization, compensation practices, and how employees are incented to interact with colleagues, clients, and customers. a critical part of sustained investment is that business leaders and boards of directors see it as their responsibility to set the tone from the top. modelling the desired behaviors sets a powerful example and serves as a form of behavioral risk mitigation. all of these actions reflect choices that a firm makes, either implicitly or explicitly, that can build cultural capital. on the other hand, cultural capital can also decline or deteriorate as a result of internal choices. for example, overt incidences of misconduct such as a trading scandal or a legal

dimitar bogov : economic and financial cycle spillovers – reconsidering domestic and cross border channels and policy responses address by mr dimitar bogov, governor of the national bank of the republic of macedonia, at the 5th annual research conference “ economic and financial cycle spillovers – reconsidering domestic and cross border channels and policy responses ”, skopje, 7 – 8 april 2016. * * * dear governors, your excellences, ladies and gentlemen, dear guests, let me wish you a warm welcome to our fifth annual research conference that we usually host to mark the anniversary of the country ’ s monetary independence. this year ’ s conference is a kind of a small jubilee considering the fact that for five consecutive years we have been inviting policy makers and researchers from the region and wider to discuss main policy issues and research questions, creating useful interaction and mutual knowledge increment, on which we are very proud. in addition, this year ’ s conference coincides with yet another great anniversary – celebration of 70 years of central banking activities in the republic of macedonia and the conference is among the events that mark this immense anniversary throughout the year. as you probably noticed, this year we have chosen quite comprehensive and challenging conference topic : economic and financial cycle spillovers : reconsidering domestic and cross border channels and policy responses. although not a new issue, it has been fully indorsed in the last global crisis and considered to be one of its main lessons that is still widely explored in the central banking and academic community. in dealing with global and domestic economic and financial cycle spillovers in the last years of turbulent global environment, central banks have broadened their objectives by including the financial stability goal, as well as many creative innovations in their toolkit. in a low or zero interest rate environment, the monetary authorities across the world turn to the use of unconventional monetary policy measures and obviously now, several years after the outburst of the crisis, it is still an ongoing practice for most central banks. while still examining their usefulness, it is difficult to discuss their exit dynamics, even in the case of the fed, although its monetary policy normalization started at the end of the last year. anyway, it is still debated whether the unconventional instruments and tools created during the crisis will become an integral part of the conventional monetary policy framework. probably this will depend on country specific circumstances and individual contribution of these newly created instruments and measures in fulfilling policy objectives on price and financial stability. macroprude