Safe and efficient clearing and settlement have been in demand as banks’ trust in each other has weakened. In Norway, our systems have had to handle major problems in two Icelandic banks operating in our country. These problems have been handled smoothly. Times of crisis can also be a turning point, providing the opportunity for change. During the Norwegian banking crisis in the late 1980s and early 1990s, Norges Bank and other public authorities put pressure on banks to increase their income from bank charges, including payment services. I believe that as banks have to focus even more on running a costefficient business, the incentives for developing the payment system further will be strong in times to come. For this conference we have received a large number of high-quality papers. I know that the selected conference speakers represent some of the best researchers in this field. We are especially pleased to have as keynote speakers two of the leading scholars in the economics of payments systems: David Humphrey from Florida State University and Jean-Charles Rochet from Toulouse School of Economics. Let me also extend my thanks to the three other members of the programme committee: Gabriela Guibourg from Sveriges Riksbank, Eirik Gaard Kristiansen from the Norwegian School of Economics and Business Administration, and Bent Vale from Norges Bank. As I mentioned earlier, I visit Nice in the South of France quite often. And from my direct observations, I notice that France has developed very fancy methods of processing cheques.
I hope this new edition will be appreciated as much as, or even more than the previous ones. Before we start the discussion, let me briefly share with you some personal thoughts on this subject. The digitalisation of financial services is clearly a fascinating subject. It is also an issue that is particularly relevant at the moment, as the emergence of digital technologies is coinciding with a period of burgeoning recovery. The fact that regulators, and notably the Banque de France, are turning their attention to these issues should come as no surprise. It is our responsibility, as central bankers and regulators, to strike the right balance between the obvious benefits that digital innovation can bring to the financial sector, and the need for an adequate framework to mitigate risks and guarantee financial stability. The search for this subtle balance can best be represented as a trinity comprising innovation, stability and regulation. We are thus facing a form of “trilemma”, and our role is to build a “possible trinity”. 1. With regard to the first element: innovation. The Banque de France is a proponent of digital innovation in financial services. There is no denying that technology has opened up a wealth of opportunities for innovation, and that we still haven’t unlocked its full potential. However, in finance, the majority of these innovations also have the potential to be highly disruptive, be it in payments, in financing (think of crowdfunding) or in financial markets (think of HFT, which has more questionable objectives).