There is already cooperation on financial supervision within the EU. This takes place for instance in the form of special committees for the supervision of banks, securities and insurance. Now it is proposed that these supervisory committees should be given the status of public authorities. This would make it clearer that the joint supervision standards are binding and not, as now, recommendations. Although I guess that in the long term we will need to go even further, this is a step in the right direction, and not a moment too soon! The crisis management routines also need to be reinforced. Supervision, regulation and crisis management are interlinked. This may seem obvious. But here the same psychological phenomenon that has driven private players to take excessive risks has also been found among politicians and others in positions of responsibility. As long as everything is going well they are happy to ignore the risks. I note that Sweden and the Riksbank have been at the forefront of these discussions. It is good that many other countries have now begun to be aware of this. A Taylor rule for capital adequacy? Let me now, towards the end of my speech, test out an idea on you. The nice thing about this gathering is that one can take such liberties without it leading to any misguided monetary policy interpretation.
DLT may provide a more efficient alternative to credit bureaus that compile consumer credit information from banks. The insurance industry in Singapore is looking at how DLT can help prevent duplicate insurance claims. 2/5  BIS central bankers' speeches  Probably, one of the potentially more powerful applications in financial services is in customer verification, the so-called “know-your-customer” or KYC process. Banks spend an inordinate amount of time and money on KYC, and yet struggle to effectively detect and deter money laundering, tax evasion, and other forms of illicit finance. DLT brings about opportunities for a shared industry-wide KYC utility that can verify customers and transactions in a more efficient and robust manner. This is not just conjecture. It is beginning to happen. In Singapore, OCBC Bank, HSBC and MUFG announced last week that they have completed a KYC blockchain project to reduce the duplicity of KYC processes, providing convenience for customers and efficiency across the banks. The “killer app” for DLT is really in cross-border transactions. When multiple entities across different jurisdictions are involved, there is no natural trusted central party. DLT allows the possibility of various parties working directly with one another to make crossborder transactions cheaper, faster, and safer. Cross-border trade is a good example. In Singapore, we are exploring two specific applications – trade finance and trade documentation. In trade finance, DBS Bank and Standard Chartered Bank are exploring the use of DLT to prevent the problem of duplicate invoicing while preserving client confidentiality.