Second: Would it be possible for a central bank to assume the role of a professional investment manager? Third: How could this activity be organised within the central bank? Norges Bank’s Executive Board, under the chair of former central bank governor Kjell Storvik, chose to take on this task. The Bank solved the two other challenges by delegating management to a separate unit for investment management – Norges Bank Investment Management or NBIM. A key aim was to establish NBIM as a business unit with clear financial objectives. Eventually, Chinese walls were erected between NBIM and the rest of the Bank. NBIM does not participate in monetary policy deliberations and does not have access to the Bank’s work concerning other matters. 6  National Budget for 2011. BIS Review 145/2010  3  In winter 1997, Norges Bank wrote in a letter to the Ministry of Finance that the investment horizon implies that a substantial share of the Fund – no less than 30 per cent – should be invested in the international equity market. In the Revised National Budget for 1997, the Ministry considered this matter and set the allocation to equities at 40 per cent 7 . In the correspondence between Norges Bank and the Ministry, there is also support for the fiscal rule’s assumption of a real return of 4 per cent with an equity allocation of 40 per cent. In 1998, the Fund started investing in listed equity in 21 countries, all of them featuring a fairly well developed financial market.
Lim Hng Kiang: Singapore’s insurance industry – investing in future growth Congratulatory remarks by Mr Lim Hng Kiang, Deputy Chairman of the Monetary Authority of Singapore and Minister for Trade and Industry, at the opening of the AXA University Asia Pacific Campus Singapore, 8 April 2009. *  *  *  Mr Henri de Castries, Chairman of AXA Management Board and CEO of AXA Group Distinguished Guests Ladies and Gentlemen I am delighted to be here with you this evening to commemorate the opening of the AXA University Asia Pacific Campus. This establishment of a full-fledged corporate training campus here reflects AXA Group’s continued commitment to people development, in Asia and to Singapore. We welcome the leadership and foresight demonstrated by AXA in investing in future growth of the industry. This investment is especially significant given the current difficult economic environment. Allow me to first comment on global economic and financial developments. Overview of economic and financial developments in the world, including Asia As you know, global financial markets are going through very turbulent times. The sharp downturn in global economic activities has taken many by surprise. Some say that this current macroeconomic condition is like the perfect storm. Sharp tightening of credit conditions, loss of confidence in banking and capital markets and sharp declines in output have resulted in a gloomy outlook for the global economy with projected growth of a meagre ½ percent for 2009. This is probably the lowest rate since World War II.