Ukraine-Poland Conference Highlights Importance of Resilience and Trust in Central Banking

The Central Bank of Ukraine, in partnership with the National Bank of Poland, hosted its 10th annual research conference. The event brought together experts from around the world to discuss resilience, trust, and innovation as responses to future challenges.

The conference featured a range of speakers, including Nobel Prize laureate Simon Johnson, European Central Bank President Christine Lagarde, and IMF Managing Director Kristalina Georgieva. They highlighted the importance of building resilience before it's needed and noted that central banks must be prepared for existential shocks, such as war and cyberattacks.

According to Kristalina Georgieva, 'resilience must be built long before it is put to the test.' She emphasized the need for advance preparation, citing Ukraine's experience in building its banking system over the past decade. Olaf Sleipen of the Dutch central bank noted that his institution had also conducted a risk analysis and identified vulnerabilities.

The conference also discussed trust, with Fabio Panetta of the Bank of Italy stating that 'trust isn't earned in the midst of a crisis.' He emphasized the importance of building trust through routine reforms and clear communication. Martin Kocher highlighted the need for central banks to remain flexible while maintaining a single goal: ensuring price stability.

Christine Lagarde outlined Ukraine's steps towards building trust, including ending monetary financing of the budget and transitioning to managed flexibility.