Despite the fact that the card industry has developed new, secure ways of making card payments over the web, the survey we have conducted shows that the majority of people still reveal sensitive card information in connection with purchases. According to the survey, only 18 per cent of web purchases were made using the safe solutions for card payments that are available. In as many as 71 per cent of the transactions over the Internet, the customers revealed their card numbers without using any additional safety measures. This is a major source of the card fraud that occurs over the Internet. The Ministry of Justice is currently considering a new proposal on the regulation of unauthorised transactions. This aims to clarify how responsibility for a loss should be divided between the customer and the bank in the event of fraud. New limits for the customers’ deductibles and right to compensation are also proposed. In order to determine how large a part of the loss the customer should be responsible for, it will be necessary to assess how negligent the customer has been. The customers must therefore be informed of the definitions of the different degrees of negligence. If the customers are unclear about the  6  4  Speech by Lars Nyberg (2008): “Paying is expensive – are we using too much cash?”. BIS Review 7/2010  rights and obligations they have, this will probably lead to fewer of them wanting to use cards in the future. The new regulation will increase the cardholders’ responsibility.

Reflecting the predominance of private-to-private flows since 1990, today sovereign foreign debt often represents only a relatively small part of maturing debt in crisis cases. Most maturing debt is owed by private borrowers and/or is locally issued. G  Third, the context has been fundamentally altered by broad institutional change. Accounting, regulatory, technological, communications, and structural market changes have fostered an environment characterized by mark-to-market accounting and much more liquid and actively managed balance sheets. Investors are focused on financial performance, and on their fiduciary responsibilities to their largely private clients and shareholders, rather than on long-term strategic relationships with sovereigns. Today this is as true for banks, which remain important providers of credit, as it is for other providers of capital. G  Last, the new environment entails new and complex linkages - - between domestic and international markets, and within and across countries - - reflecting the internationalization of local banking, equity, debt, and currency markets, and the greater complexity of funding structures. G  This new environment has important implications for policymakers and market participants alike. Let me comment on just a few:  G  On the negative side, crises are more complex and unfold much more quickly and with surprising dimensions. Variable and often highly interdependent cross-market developments are often critical in the evolution of a given case and its implications for others. Indeed, many of the more recent crises were triggered by problems in domestic banking, currency, and debt markets that then spread to the capital account.