Although, as recent years have shown, our economy has learned to adapt to external shocks, there are nevertheless a host of internal factors that leave us rather exposed. These include low economic diversification, insufficient flexibility of institutions and rules, a weak competitive environment (where new companies find it hard to enter the market and those lagging behind economically continue to do so for a long time). As a result, even given the potential for growth (which, as you know, the Central Bank estimates at 1.5-2%) there will potentially be significant fluctuations in output in the coming years. Therefore, there is an urgent need for structural changes that will raise the bar of potential growth above 1.5-2% and make it sustainable. The financial sphere is also in need of such structural changes. What policy response are we seeing in the face of these challenges in the financial sphere? 2 / 11  BIS central bankers' speeches  Above all, focus should be on maximum flexibility. Certainly, the floating rate should be upheld. It is crucial to adjust and constantly re-adjust regulation in established and new spheres based on the principles of proportionality to risks. Since rules quickly become outdated, it is important to gradually transition from management guided by rules to management by principles. Greater attention should be paid to systemic problems and risks, not just to the stability of individual institutions. Adopting the principle of countercyclicality, using macroprudential tools. Early warning of problems both in the system as a whole and in individual institutions.
Indeed, what we can do together to foster development of the financial sector and what the financial sector can do to foster development of the economy will be the subject of our discussion here at the congress. I look forward to the productive work and successful outcomes we will share. Thank you for your time. 11 / 11  BIS central bankers' speeches