16  17  18  19  20  Chart 2  GDP and Real Exports Real GDP 15  Real exports  contribution ratio, s.a., ann., q/q % chg.  130  s.a., 2013/Q1 = 100  10  Real exports  5  120  0 -5 -10  110  -15 Private demand  -20  Public demand  -25  Net exports Real GDP  -30 -35 CY2011  100  90 12  13  14  15  16  17  18  19 20  Note: In the right‐hand chart, figures are based on staff calculations.
The episode highlights the ill effects of excessive competition and the need for regulatory oversight (i.e. oversight of the rate setting process in this case). Now let me focus on governance issues in the context of risk management III.