BIS central bankers’ speeches  3  Another area where there needs to be greater international cooperation is in defining the roles of home and host countries especially during times of stress. What is the responsibility, for example, of the host country to provide lender-of–last- resort liquidity to foreign firms operating in their jurisdiction? At what stage, if any, does that responsibility shift to home country? Should these responsibilities change depending on the degree of information exchange or the degree or duration of stress? On the resolution front, we know that the benefits of a harmonized global regime would be substantial. By providing greater transparency to investors and depositors about the rules of the game in the event of distress, such a regime would likely reduce the likelihood of runs and financial panics while also allowing financial intermediation to occur on a global basis. However, it is proving challenging for some jurisdictions to provide clarity around how an orderly resolution would be implemented in practice. At the same time, this lack of clarity within jurisdictions is contributing to and exacerbated by the lack of a harmonized approach across different legal and regulatory regimes. Many questions must be answered: How would different creditor and counterparty claims be treated? Who would provide the bridge financing to facilitate the orderly liquidation? Would the home country regime ensure equal treatment of all banks’ claims around the world, regardless of jurisdiction or legal entity? Would there be clarity about this, ex ante?

With different standards and core systems, financial transactions and data flows will face frictions, which will discourage competition, collaboration, and innovation. In the world of Big Tech, strengthening the value of our financial network is critical for a small economy like Thailand, and it needs to be done so that our network remains dynamic and efficient, fostering an ecosystem conducive to innovation and competition. The nature of financial services requires that we emphasize on strengthening the value-added of our financial network. Therefore, the transformation towards digital finance cannot be efforts of individual firms alone, and we need to focus on creating the digital finance ecosystem with active collaboration from a wide range of stakeholders. Ladies and gentlemen, Today I would like to take this opportunity to highlight four important principles that have underpinned our recent developments and will continue to guide our FinTech agenda. These are principles that will strengthen the value of our financial network and develop our digital finance ecosystem. The first principle is the open architecture framework. Important infrastructure must be made open, allowing both old and new market participants to easily connect as long as they meet the required security standards, appropriately share the cost of development and maintenance, and do not pose financial stability risks. The open architecture framework will level the playing field and eliminate barrier to entry for new players who often enter the market with innovations. The second principle is interoperability of systems.