This is an important part of the Bank’s responsibility to promote safe, sound and efficient financial systems. Cross-border payments I’d like to turn now to the issue of cross-border payments, an area that has an obvious and pressing need for improvement. Sending money abroad has always been notoriously slow and expensive for individuals and businesses—so much so that it interferes with lives and livelihoods.
The third challenge is the moral hazard implied by many, if not most, non-standard measures. Because the central bank may be expected to use its virtually unlimited “firepower”, the need for making the painful, but necessary, adjustments may easily be forgotten by the other actors – be they banks or sovereigns.