19  20  See Figure 3 in Flodén (2016). 21  See af Jochnick (2015). Flodén (2016). Sims (2016) discusses more generally how large balance sheets risk weakening the financial independence of central banks. 22  This conclusion is not self-evident, however. One could also argue the opposite and say that the Riksbank, as a result of low interest rates and small amount of cost-free capital, should seek higher returns. And in normal times, government bonds with long maturities can be expected to give a return that is higher than the anticipated funding costs via the repo rate. Such a search for yield is associated with risks and will sometimes succeed, sometimes fail. It is therefore hardly a sustainable strategy for an institution like the Riksbank, which is now celebrating its 350th anniversary and is striving for an equally long future existence. 23  16 [16]
Lord Mayor, you are a great example to all of us who want to improve the diversity of our institutions, which makes them better places to work in. You are going on to undertake a role of great importance, one that reminds us that whatever the problems that we deal with, there are unthinkable acts of evil taking place. It reminds us not be become obsessed with our own work to the exclusion of the terrible human suffering that can happen. We wish you all the best in your future role, and please accept our thanks for all that you have done and are doing as Lord Mayor. 4  BIS central bankers’ speeches