Page 9/9  The evolution of payment systems in the digital age: a central bank perspective  Andréa M. Maechler, Member of the Governing Board Thomas Moser, Alternate Member of the Governing Board Zurich, 28 March 2019  Innovations in payment systems: between efficiency and security Promissory notes, cheques & banknotes  Gold & silver  Electronic bank money (net settlement)  Cost & efficiency  Security & confidence Coins 1  28.03.2019 Money Market Event | Andréa M. Maechler and Thomas Moser | © Swiss National Bank  Central bank money  Real-time gross settlement  Source: SNB  RTGS  Digitalisation is changing the payments ecosystem Client interface  DLT  Business models  New stakeholders  Technical possibilities Payments infrastructure  Regulation Source: SNB  Cyber risks  Unbundling of value chains  2  28.03.2019 Money Market Event | Andréa M. Maechler and Thomas Moser | © Swiss National Bank  Four challenges of the digital age  Client interface Focus on client contact and client data  Value chain  Source: SNB  Development of core infrastructure  3  28.03.2019 Money Market Event | Andréa M. Maechler and Thomas Moser | © Swiss National Bank  Two models for integrating new stakeholders into the payments ecosystem Model 2: Direct access  Model 1: Open access  Client  Client  Fintech  Fintech  Bank  Source: SNB  RTGS  4  28.03.2019 Money Market Event | Andréa M. Maechler and Thomas Moser | © Swiss National Bank  Four challenges of the digital age  Client interface Focus on client contact and client data  Value chain Development of core infrastructure  Zukunftsfähigkeit DLT des Zahlungssystem  Interoperability with DLT  Zukunftsfähigkeit des Cyber risks Zahlungssystem  Security of data communication  Source: SNB  5  28.03.2019 Money Market Event | Andréa M. Maechler and Thomas Moser | © Swiss National Bank  Thank you for your attention  © Swiss National Bank

Andrew G Haldane: Curbing the credit cycle Speech presented by Andrew G Haldane, Executive Director, Financial Stability, Bank of England, at the Columbia University Center on Capitalism and Society Annual Conference, New York, 20 November 2010. *  *  *  The speech was prepared by Messrs David Aikman, Andrew G Haldane and Benjamin Nelson. The views are not necessarily those of the Bank of England. We are grateful to Piergiorgio Alessandri, Richard Barwell, Salina Ladha, Roland Meeks, Victoria Saporta and Alan Taylor for comments. Thanks to Vijay Balle and Clare Rogowski for excellent research assistance and to Moritz Schularick and Alan Taylor for making their data available to us. 1. Introduction  Credit lies at the heart of crises. Credit booms sow the seeds of subsequent credit crunches. This is a key lesson of past financial crashes, manias and panics (Minsky (1986), Kindleberger (1978), Rogoff and Reinhart (2009)). It was a lesson painfully re-taught to policymakers during the most recent financial crisis. This time’s credit cycle has been particularly severe and synchronous. In 2006, private sector credit across the UK, US and euro area rose by around 10%. During 2009, private credit in these countries fell by around 2%. 1 The knock-on consequences for real growth were equally severe and synchronous. Peak to trough, G7 real output fell by 3.6% during the Great Recession. In response, there have been widespread calls for remedial policy action. These proposals come in various stripes.