Even where national authorities had been created, there was uncertainty over the right way to assess risks, which instruments to use and how to calibrate interventions. Moreover, there was a real risk of inaction bias since the costs of macroprudential policy are visible and are felt immediately, but the benefits accrue over time and are difficult to quantify.5 Given this somewhat tentative start for macroprudential policy in Europe, substantial progress 1/4  BIS central bankers' speeches  has been made over the past eight years. Macroprudential authorities now exist in all but one Member State. The gaps in our framework and knowledge have slowly been filled through research and experience. The ESRB has played an integral part in this process.6 The framework has also helped to counter the risk of inaction bias. National macroprudential authorities have mandates and legal tools to act. At the European level, the ESRB also holds a mandate to monitor risks and vulnerabilities and has a number of legal instruments at its disposal. It can, for example, issue warnings if it has identified a significant risk to financial stability, as well as recommendations setting out remedial steps to be taken on an act-or-explain basis. National authorities have certainly demonstrated their willingness to use the tools at their disposal. Most EU countries currently have at least one measure in place to address risks in the residential property sector and half have measures to tackle risks in commercial real estate.
The report will provide a helpful basis for each individual jurisdiction to analyse whether and how to extend domestic operating hours. It will indeed feed into the Bank’s own analysis of extended operating hours. I would encourage central banks to undertake self-assessments against both frameworks. If more firms can use payment systems and for longer, it could simplify payment processing, expand the global settlement window and increase opportunities for new entrants to stimulate innovation for the benefit of consumers and businesses around the world. The Road Ahead There are three key ingredients that if mixed together could help the global payments ecosystem move the dial on payments. First, an innovative and forward-looking fintech and financial sector. Second, resilient, accessible and functional public infrastructure creating a platform for coordinated innovation. Finally, international collaboration across the public and the private sectors to promote harmonisation and interoperability. The combination of the three can speed up our journey to a world where any customer wherever they are and whatever the size of 5/6  BIS central bankers' speeches  payment can transact quickly, cheaply and securely. I would like to thank Andrei Pustelnikov for his help in preparing these remarks. I would like to thank John Jackson, Andrew Bailey, Dave Ramsden, Megan Solomon, Paige Benattar, Jurin Ohyama, Sam Leighton, Anna Koch, Michaela Costello, Paul Bedford and Dovile Naktinyte for their helpful contributions and comments.