side of the atlantic, the top 1 % of banks hold less than 50 % of excess liquidity. and on the right - hand side you can see that the ten largest banks in the euro area hold just a little more than a quarter of excess liquidity, compared with almost 70 % in the united states. at face value, the euro area ’ s more even distribution of liquidity suggests that it may be less likely to experience an episode of high interest rate volatility. but there are two features – one of them specific to the euro area – that warrant caution. the distribution of excess liquidity and the two - tier system the first feature relates to the distribution of excess liquidity within and across euro area jurisdictions. on the left - hand side of my next slide you can see that banks ’ excess liquidity is often much less evenly distributed than at the country level. in italy, for example, the top ten banks together hold 80 % of excess reserves – a concentration level that is, in fact, higher than in the united states. in france, the top 10 banks hold 70 %. on the right - hand side you can see that excess liquidity holdings in the euro area are also highly concentrated in just a few countries. such concentration levels are, in principle, of little concern to policymakers in the presence of a deep and active money market across the euro area – that is, as long as banks with excess liquidity holdings are willing and able to smooth liquidity shortages elsewhere in the system. if there is fragmentation, however, then temporary spikes in interest rates are also possible in the euro area, despite the remarkable excess liquidity levels we are currently seeing. in other words, in the euro area, compared to the united states, it is fragmentation rather than concentration that may make liquidity supply less elastic. the recent introduction of a two - tier reserve remuneration scheme for the excess reserves of euro area banks provides an interesting showcase for just how fragmented our money markets remain today. the scheme allows banks to deposit a pre - determined quantity of excess liquidity – their exemption allowances – at a rate higher than the deposit facility rate. to see the effect of the scheme on money markets, it is important to recall that exemption allowances are allocated as a multiple of banks ’ reserve requirements. this allocation scheme has led to some banks receiving allowances that are higher than their excess liquidity holdings. specifically, ecb staff calculations suggest that around one - third of exempt

kevin greenidge : the role of pension plans in a growing barbadian economy remarks by dr kevin greenidge, governor of the central bank of barbados, at the eckler investment policy review for pension plans conference, bridgetown, 19 november 2024. * * * good morning. it is my honor to address you at this year's pension investment conference. i extend my gratitude to ms. wade and her colleagues for the invitation to share insights on " the role of pension plans in a growing barbadian economy. " barbados has demonstrated resilience and strength, transitioning from a challenging period to one of sustained economic growth since the second quarter of 2022. this progress is a testament to the dedication and collaboration of our people and institutions, and it has created a solid foundation for us to discuss the critical role of pension plans - not just as instruments of financial security, but as active contributors to national development. the barbadian economy is on firm footing. over the first nine months of 2024, real gdp expanded by 3. 9 percent, led by key sectors such as tourism, business services, and construction. this growth has delivered measurable outcomes : a strengthened fiscal position, evidenced by a primary surplus of $ 581. 9 million ( 4 percent of gdp ). declining unemployment, which fell to 7. 7 percent in mid - 2024. debt - to - gdp ratio down to 105. 6 percent robust international reserves, currently standing at $ 3. 2 billion – providing over 31 weeks of import cover. our progress is underpinned by strategic investments in education, digital transformation, and infrastructure - all of which contribute to the economy's foundation and, indirectly, to the pension landscape by creating jobs and boosting long - term growth potential. in this environment of sustained growth, the pension sector plays a vital role in ensuring financial security for our ageing population while fueling national development. barbados has a proud history of leadership in pensions, from being the first british colony to introduce non - contributory old - age pensions in 1938 to the establishment of the national insurance scheme in 1967. however, modern challenges demand renewed focus : 1 / 2 bis - central bankers'speeches funding deficits : as highlighted in the 2023 financial stability report, over 28 percent of defined benefit plans remain underfunded, with an average funding ratio of 84. 1 percent. shifting demographics : an ageing population and declining birth rates pose longterm sustainability challenges. the imperative is