Absolute borrowing costs for most borrowers are very low despite higher spreads, because the return on one of the least risky assets – the cash rate – is the lowest for 50 years or more. The market yields on government securities, the lowest risk assets of all, have likewise been very low.
Bigtechs providing payment and financial services are clearly part of our financial ecosystem. We must work on the necessary technological and regulatory conditions to avoid regulatory arbitrage. It must be clarified that a level-playing field is not against innovation.