In the presence of such externalities, financial firms may still have excessive private incentives to remain big, complicated, and interconnected, because they reap any benefits – for example, in terms of economies of scale and scope – but don’t bear all the social costs. How can we do better?
Reference of PFMI for the Retail Payment Systems: 7’S Framework It is appropriate to ask the question whether and how the 24 new Principles for Financial Market Infrastructure would be relevant for the Retail Payment Systems.