Possibly the only way to mitigate the risks of market failure in respect of financial innovation is regulation. And herein comes responsibility. Innovators must be responsible for the way they use their innovations. Regulators must be responsible for ensuring that financial stability and consumer interest are not compromised by the innovations. This sort of responsibility demands competence, foresight and wisdom on both sides.
Payment and settlement systems 7. Responsible innovation and regulation is the topic I want to address today. “Responsibility” should be the thrust of innovation in all segments of financial markets and responsibility should be the credo governing regulation across all dimensions of financial regulation. Today, though, I will focus on a narrower segment – responsible innovation and regulation in payment and settlement systems. 8.