The current financial market turmoil is, at least in the short and medium term, the most obvious challenge bring with it fundamental repercussions. The main issue is naturally a more difficult business environment due to the deleveraging process and a consolidating financial sector. Clearly there is overcapacity, which is melting away and banks’ position becomes thus tighter.
The role of central banks in the field of retail banking and payment systems The role of central banks is and should remain rather limited in retail payment systems. Central banks can promote a beneficial and competition-friendly environment for retail banking and payment services in particular as overseers and regulators. Their concerns are the integrity and reliability of the systems, not forgetting efficiency.