At the same time, there has been a need to fundamentally rethink conceptual frameworks and approaches to financial regulation. The rapid digitalization of trade and finance has transformed the nature of financial services, the types entities offering them, and the location from which they are being offered. Borders and dividing lines are being eroded, creating potentially large gaps in regulatory perimeters. Meanwhile the  2/4  BIS - Central bankers' speeches  rise of data-intensive platforms with strong network effects have raised issues concerning privacy and competition. How best to foster innovative solutions while safeguarding stability, ensuring fair competition and market contestability, and providing adequate consumer protection? What is the appropriate balance and combination between entity-based and activity-based regulation? How does this relate to the application of micro-versus macro-prudential regulation? Moreover, we also need to consider how best to gear regulation to facilitate the green transition that is so critical. Our conceptual framework for financial oversight has to shift as we grapple with these complex regulatory challenges. The climate challenge The third and final fault line is climate change and central banks' role in combating it. Of all the three challenges, this is arguably the most daunting one. It is new to us. There is no precedence to follow. And the outcome is not under our direct influence, testing the limits of our tools. Yet we cannot ignore it. Given the potential consequences, combatting climate change is simply too urgent and too important.
Mr Nyberg comments on how EMU may affect the Swedish housing loan market and its financing  Speech by Mr Lars Nyberg, Deputy Governor of the Sveriges Riksbank, at Föreningssparbanken in Warsaw on 14 October 1999. *  *  *  Thank you for giving me the opportunity to come here and give some points of view on how EMU may affect the Swedish housing loan market and its financing. This is undeniably an issue which we have every reason to take an interest in whether we take part in the monetary union or not. One of the ideas with EMU is to create a more efficient market for goods and services where competition is increasing and consumers obtain better products at lower prices. In the housing loan market, this should mean that borrowers expect a greater range of products, more suppliers and lower interest rates. How should the Swedish housing loan institutions handle this challenge? Competition for customers As we know, the national housing loan markets in Europe look rather different, which is illustrated by the following diagram (figure 1). In countries such as Germany, Denmark, Sweden, the Netherlands and the United Kingdom, the total outstanding stock of loans with mortgages in property totalled over 50% of GDP. In other countries, including Greece and Italy, the equivalent figure is under 10%. The differences depend on factors such as the systems of rules, tax legislation and market structure which vary from country to country.