Furthermore, it should be stressed that many of the reasons for the low level of the natural interest rate in our economies originate in structural phenomena, such as population ageing and low productivity, which are also responsible for lowering potential growth. Thus, the structural reforms to address these problems will not only raise future growth and well-being, but also the natural interest rate, thereby making the design and implementation of monetary policy easier. All these issues will be analysed in our review of the ECB’s monetary policy strategy. I have no doubt that this review will increase the effectiveness of monetary policy in the euro area and its ability to achieve its objectives in the macroeconomic environment of the coming decade. Thank you very much. 18  References  Aguilar, P., Ó. Arce, S. Hurtado, J. Martínez-Martín, G. Nuño and C. Thomas (2020). The ECB monetary policy response to the COVID-19 crisis, Documentos Ocasionales, No 2026, Banco de España. Altavilla, C., F. Barbiero, M. Boucinha and L. Burlon (2020). The Great Lockdown: Pandemic Response Policies and Bank Lending Conditions, Working Paper 2465, European Central Bank. Alves, P., F. Arrizabalaga, J. Delgado, J. Galán, E. Pérez Asenjo, C. Pérez Montes and C. Trucharte (2021). “Recent developments in financing and bank lending to the nonfinancial private sector”, Analytical Articles, Banco de España. Alves, P., R. Blanco, S. Mayordomo, F. Arrizabalaga, J. Delgado, G. Jiménez, E. Pérez Asenjo, C. Pérez Montes and C. Trucharte (2020).

In most cases, these branches or outlets are located in urban centres, with rural areas having few if any branches. Conversely as at June 2010 the three mobile phone operating networks in Zambia had a total of about 4.6 million subscribers. Distinguished participants, this situation grants us an opportunity to develop innovative approaches of extending financial services. It will no doubt involve remodelling of traditional  BIS Review 144/2010  1  products, service delivery channels and regulatory frameworks. It is important that all possible alternatives are critically examined for viability, safety and efficiency. Some of the alternatives that need urgent examination include bank partnerships with non-bank agents to provide wider distribution outlets for payments and other financial services, and leveraging new technologies such as a common national switch to extend financial services. Mr Chairman, the Mobile Money Transfer has the potential to act as the fulcrum of branchless banking, which allows provision of transactional banking services without the need of a “brick-and-mortar” branch. Individuals are allowed to remotely access cash using different technologies, which may include automated teller machines, point of sale devices, mobile phones, payment cards or other smart technologies. To ensure that payment service providers take full advantage of the benefits that come with implementation of a Mobile Money Transfer, they must develop and embrace new business models. These models may be built around the existing large financial flows such as remittances, salary and wage benefits, pensions and other government social benefits transfer system.