The response has been centred on three main layers: -  Strengthening of the microprudential framework with higher capital requirements (Basel III) and new resolution frameworks in most jurisdictions; The introduction of a separate and tighter framework for systemically important financial institutions The development of a new macroprudential policy framework addressing systemic risk   Enhanced international coordination. The global nature of the crisis required a global response and new international institutions to coordinate the regulation of the financial sector. At the global level we saw the creation of the Financial Stability Board and the intensification of the work at the Basel Committee (BCBS). In the case of the European Union, we have taken an important step towards financial integration, most notably with the activation of the Banking Union, currently comprising two elements: the Single Supervisory Mechanism and the Single Resolution Mechanism. There is a third necessary pillar, the European Deposit Insurance Scheme, which is still under political negotiations. III. Four broad challenges for central banks ahead:  1. Are we under a “new normal” macroeconomic environment for the macroeconomy and what does it mean for monetary policy? New normal? Debate about whether or not we are facing a new structural reality of secular stagnation that defines a “new normal” for the macroeconomy, characterised by low growth, low inflation and low real and nominal interest rates. Most estimates suggest that the natural interest rate (i.e.

Compared to other sectors of the economy, fintech is progressing at a slower pace, especially in Europe, as new companies need to gain the confidence and trust of consumers and investors, which traditional financial institutions have gained over long periods of time having been anchored by strong financial regulation and supervision.  For regulators the challenge of fintech affects both prudential and consumer protection. -  Prudential perspective: supervisors have to strike the right balance between catalysing the innovation and efficiency that fintech can bring, while preserving at the same time the regulatory level playing field and a safe and sound framework. We should seek to apply the same regulation to the same services. As fintech steps up its presence, it might be useful to place increasing emphasis on regulating services rather than institutions. -  Consumer and investor protection: it is key that financial investors and consumers fully understand the implications of the fintech services, including credit risk, cybersecurity and protection of privacy risks. We have to strengthen our policies of information and financial education regarding fintech services. 4.  International cooperation   Need for coordination. Given the context of highly interconnected and cross-border financial markets, it is of paramount importance that we sustain the efforts to strengthen international financial coordination. We need to avoid the risks of regulatory arbitrage or a regulatory race to the bottom among jurisdictions. International fora such as the G20, the Financial Stability Board, the Basel Committee and or the IMF are key in this task.