This is not normal, but today there is no other alternative but to continuously expand controlling powers. Since there is little hope for self-regulation, we believe it right to move towards more systemic efforts in order to limit risks for customers. We would like to, so to say, coordinate the fundamental principles with the market community. The first principle is product governance, that is, product life cycle management. We discussed this topic yesterday at the International Financial Congress. We are now drafting a relevant 5/7  BIS central bankers' speeches  consultation paper and will publish it soon to discuss it with the financial community. The idea of such product governance is that, before offering new products or services in the market, a company should identify the target audience and its needs, inherent risks for customers, and test new products before their launch. The second fundamental principle is the assessment of the customer value of a financial product. In our opinion, a high-quality financial product should conform to consumers’ reasonable expectations. I firmly believe that if market participants focus on the customer value of a product, this will promote effective competition in the market. Unfortunately, not all financial products offered in the market today conform to the customer value principle. As an example, let’s look at recent statistics on housing equity holders’ insurance and insurance in general.
“Measuring the Natural Rate of Interest: International Trends and Determinants,” Journal of International Economics, vol. 108(S1), pages 59–75. Rachel, Lukasz & Smith, Thomas D., 2017. “Are Low Real Interest Rates Here to Stay?” International Journal of Central Banking, vol. 13(3), pages 1-42. World Bank, 2016. “Poverty and Shared Prosperity 2016: Taking on Inequality”. World Bank Group report. 2/2  BIS central bankers' speeches