This could ultimately result in a lower amount of capital in the system as a whole, which might not be a very welcome prospect, specially from the supervisory perspective. Third, while the Pillar III disclosures could be quite useful for the market analysts and sophisticated users of this information, the utility of such disclosures for the common man remains a moot point.
Moreover, any value judgement on DBM needs to be assessed against a number of high-level principles, namely (1) technological safety, (2) efficiency, (3) technological neutrality, and (4) freedom of choice for users of means of payments. Today, I would like to outline some of the various options for designing, issuing and managing DBM, and discuss some of their potential consequences.