However, here is where a challenge lies for financial regulators. Innovation is good, but not all innovations are good, and not all good innovations are done well.
So regulators and supervisors need to: not get in the way of ‘good’ innovation; seek to prevent or limit innovations that are detrimental to the goal of well functioning financial services and markets; and ensure that the associated risks are well-managed. These are important topics for the Central Bank. So, today, I will cover:  1.