Retrieved at www.treasury.gov/initiatives/Documents/Volcker%20sec%20%20619%20study%20 final%201%2018%2011%20rg.pdf. Firestone, S., Lorenc, A. G., & Ranish, B. (2017). An empirical economic assessment of the costs and benefits of bank capital in the US. Finance and Economics Discussion Series, Divisions of Research & Statistics and Monetary Affairs, Federal Reserve Board, Washington, D.C., No. 2017-034. Friedman, B. (2009). Overmighty finance levies a tithe on growth. Financial Times, 26 August. 57  All speeches are available online at www.bankofengland.co.uk/speeches  57  FSB (2010). Reducing the moral hazard posed by systemically important financial institutions. FSB Recommendations and Time Lines. 20 October 2010. FSB (2013a). Strengthening Oversight and Regulation of Shadow Banking. Policy Framework for Strengthening Oversight and Regulation of Shadow Banking Entities. 29 August. FSB (2013b). Progress and Next Steps Towards Ending “Too-Big-To-Fail” (TBTF). Report of the Financial Stability Board to the G-20. 2 September. FSB (2014). Key Attributes of Effective Resolution Regimes for Financial Institutions. 15 October. FSB (2017a). Implementation and Effects of the G20 Financial Regulatory Reforms, 3 July 2017, 3rd Annual Report. FSB (2017b). Review of OTC derivatives market reforms. Effectiveness and broader effects of the reforms. 29 June 2017. FSB (2017c). Ten years on – taking stock of post-crisis resolution reforms. Sixth Report on the Implementation of Resolution Reforms. 6 July. FSB (2017d). Policy Recommendations to Address Structural Vulnerabilities from Asset Management Activities. 12 January. FSB (2017e). FSB Chair’s letter to G20 Leaders – building a safer, simpler and fairer financial system. 3 July. FSB (2017f). Financial Stability Implications from FinTech - Supervisory and Regulatory Issues that Merit Authorities’ Attention.
The role of regulators and their policies are thus important, at least regarding two aspects: the promotion of the use and development of technology, including the incorporation of technological improvements into financial services provision; and the need to ensure that headway in financial inclusion does not impair consumer safeguards or financial stability. I would like to offer some brief thoughts on each of these two points. Promoting the use and development of new technologies. Logically, developing technological solutions requires suitable telecommunications infrastructures. They must provide widespread access to the Internet, including in rural areas, while seeking to improve digital education and offer safeguards against vulnerabilities such as cyber threats. We should not forget that approximately two-thirds of the adult population without access to 1  See Cull et al (2014). 2/3  banks do have a mobile phone. And, as the World Bank points out, these devices are proving essential for improving accessibility to financial services. Moreover, the development of a stable institutional framework – paving the way for competition, providing legal security to the new financial proposals and ensuring an appropriate level of interoperability – is vital for generating the necessary confidence in financial services. Also, aspects such as legal recognition of digital identification, the use of biometrics in identification and ease of access to public data in “Know your costumer” (KYC) procedures, are matters the different tiers of government can push and which catalyse significantly the progress in financial inclusion. Monitoring the risks inherent in financial innovation.