This concrete type of approach will give our experts a vision of the diversity of cases and thus the maturity necessary to provide the market with relevant and operational guidance. Obviously, all this work shall be considered as a contribution to the evolution of a more global framework – at European and international level. The European level is of course the most relevant one to promote innovation for financial services in the single European market. The success of the two payment services directives (PSD1 and PSD2) clearly illustrates how European legislation can identify new trends, trigger innovation and create a true momentum in the Fintech ecosystem. More recently, the GDPR provided the European Union with a clear framework for data protection and circulation: this regulation is now a reference for many third countries, which identify the risk that unregulated data exploitation can pose to consumers’ confidence. However, the European market cannot be considered in isolation and this will remain the case in the post-Brexit era. Innovation – and growth – benefit from open ecosystems. Risks in a digitalised world do not recognize borders. Ensuring a better coherence of national (or regional) regulatory frameworks in the world is therefore a key element for their effectiveness. Crosssector and cross border cooperation is necessary. Our initiative for a G7 cyber-attack simulation exercise or our contribution to the G7 working group on global stable coins are two recent examples of our commitment to this necessary worldwide cooperation. 2/4  BIS central bankers' speeches  2.

In countries such as Italy and Germany, supports in the form of capital, credit and other liquidity were employed in addition to the fiscal policy. Meanwhile, in emerging markets, economies were supported by various measures, although these measures were more limited compared to advanced economies. With the rate cut decision we took at the Monetary Policy Committee Meeting on 17 March 2020, we announced our first set of measures geared towards countering the economic effects of the pandemic. These measures aimed to; (i) (ii) (iii) (iv)  enhance predictability by providing banks with flexibility in Turkish lira and foreign exchange liquidity management, offer targeted additional liquidity facilities to banks to secure uninterrupted credit flow to the corporate sector, boost cash flow of exporting firms through arrangements on rediscount credits, and boost the liquidity of the Government Domestic Debt Securities (GDDS) market. The uninterrupted and smooth functioning of financial markets, the credit channel and firms’ cash flows was essential to contain the adverse effects of the coronavirus. The measures taken boosted the financial sector’s liquidity and credit conditions, and the monetary transmission mechanism continued to function effectively. 5  In sum, we aimed to support financial stability and the post-pandemic recovery process by providing much-needed liquidity to the financial system and the real sector under appropriate conditions during the pandemic. Thus, we sought to minimize the long-term damage to production and employment that may be caused by temporary effects arising from the pandemic.