The transition from Basel I to Basel II essentially involves a move from capital adequacy to capital efficiency. This transition in how capital is used and how much capital is needed will become a significant factor in return-on-equity strategy for years to come.
But it's not just when electronic payment instruments are temporarily out of action that people turn increasingly to cash – they do the same in times of heightened uncertainty, like during the COVID-19 pandemic. What role does cash play, especially in times of turmoil? And how can the supply of cash to the economy be ensured at all times?