First, even excluding crisis-related stimulus measures, most advanced economies are still left with historically high deficit-to-GDP ratios, which, viewed from today’s perspective, are largely structural in nature. To put it another way, given the lower actual and potential post-  6  BIS central bankers’ speeches  crisis output and correspondingly lower post-crisis tax revenues, pre-crisis spending levels are no longer affordable.
Today, I intend to cast more light on these issues by addressing two aspects that are required for innovative financial services to come to fruition: 1. the underlying market infrastructure for financial services; and 2. the founding legal frameworks necessary for developments to flourish in the payment landscape. My speech will focus on instant payments and payment initiation services.