Fundamental to the growth of internet banking over the years is the confidence which the public has in its convenience and security. This is something that we cannot take for granted and must be continuously preserved. Advancement in technology and innovation has resulted in greater consumer convenience and enhanced efficiency. However, the same technology and innovation have also created new methods of perpetrating fraud that could be executed faster and with greater reach. Cyber criminals have been active ever since the advent of the internet, and are constantly finding new ways to defraud innocent victims. Safety and security of transactions in the banking system is fundamental in ensuring consumer confidence. Hence, an important function and responsibility of the Central Bank is to ensure online transactions can be made in a safe and efficient manner in the economy, in the pursuit of monetary and financial stability objectives. The need for constant vigilance & cooperation This fight that the banks are launching today is something that requires the support of all parties. We are aware of the creative ways in which criminals have attempted to deceive customers over the years and measures were required to be taken by the banks to protect the customers. While it is good to know that banks have played their roles in investing in robust security systems, they must also ensure that customers play their part in protecting their own assets and savings. The reminder and greater awareness from the Banks through this campaign is timely.
So, to the extent that we become more confident, if we become more confident about the economic outlook, that the recovery will be sustained, then I think that for me – speaking for myself, and only myself – that might make me a little bit more comfortable to proceed with balance sheet normalization a little bit more quickly. I think the important thing here is that when balance sheet normalization occurs and we start to end the reinvestment, don’t think of it as an active tool of policy. Think of it as a passive tool, number one. And number two, to the extent that we then do decide at some point in the future to taper or end the reinvestment, that will also be a way of removing accommodation. And so that would be a bit of a substitute for raising short-term interest rates. So, I would guess, my own personal view, is if we move to balance sheet normalization, that might actually stretch out the process of raising short-term interest rates a little bit because the two are substitutes for one another in terms of removing monetary policy accommodation. The Chair said in her testimony that this is something we’re going to be looking at over the coming meetings.