Allied to this underestimation of the significance of systemic interlinkages was an excessive faith in modelling, to which the supervisory authorities also subscribed. 11 There was a general conviction that the commonly used quantitative models for measuring risk captured the actual risks in the banking system fully and reliably – a dangerous misapprehension. For instance, these models’ risk calculations were based on correlations of price trends in the recent past, while often disregarding the fact that such correlations can change rapidly and significantly, for reasons that are not directly apparent from the data. Moreover, the models simply did not 9  The ‘too big to fail’ issue had been discussed in detail in a number of academic studies and textbooks before 2008; for example, cf. Stern and Feldman (2004). 10 Cf. Moosa (2010). 11 For example, cf. Bernanke (2006). Page 6/14  sufficiently replicate certain risks which grew to major proportions over the course of the crisis, such as the default risk of positions which the banks were holding on the assumption that they could easily sell them at short notice. 12 Since the regulatory capital requirements largely relied on these model-based calculations, they did not adequately take account of the actual risk exposure. Against this background, the resilience of many banks proved to be insufficient overall during the crisis. Relative to their risk exposure, the banks simply did not have large enough liquidity and capital cushions. They were unable to absorb large outflows of funds and losses.

Therefore, we do see now financial literacy and inclusion high on the global agenda. Thus, in 2010, Global Partnership for Financial Inclusion (GPFI) was established reflecting concerted global efforts that do not solely reflect the need to elevate financial education and literacy to safeguard financial stability. Much more, they are reflection of the understanding that inclusion can help to address poverty and shared prosperity by smoothing household incomes, reducing vulnerability to shocks, enhancing investments in education and health, and encouraging the growth of businesses. In fact, this is why financial inclusion is linked to at least eight of the United Nations’ 17 Sustainable Development Goals. Global efforts yielded up global improvement. Leveraging on different data sources and the latest 1/3  BIS central bankers' speeches  conclusions of the Global Partnership, several takeaways can be pinpointed. There is a rise in the financial inclusion. Globally, the share of adults holding an account at a financial institution or through a mobile money service over the years has significantly increased from 51% to 69%. In low-income economies, there are twice as many mobile money accounts than bank accounts per 1,000 adults. (IMF Financial Access Survey). Yet disparities remain. Despite this progress, 1.7 billion adults remain unbanked and inequalities persist. Women in developing countries remain 9 percentage points and globally, by 4 percentage points less likely to have an account than men. Small and medium-sized businesses are mostly excluded from formal borrowing, despite increasingly having an account at a financial service provider.