Undoubtedly this is the strongest countercyclical macroeconomic policy response we have ever implemented to a shock of this magnitude, and it was possible thanks to a sound corporate sector, a well-capitalized and resilient financial sector, and a solid position in terms of international liquidity. Importantly for the discussion ahead, this was the result of careful regulation and supervision of individual financial institutions. This scheme hails back to the banking crisis of the 1980s, and it has been constantly adapted and improved since then. In Chile, financial services are regulated and supervised by different institutions according to the type of service; securities and insurance, the pension system and unemployment insurance, and banks. In the case of banks, the Superintendence of Banks and Financial Institutions and the Central Bank are in charge. Different schemes have been designed to facilitate coordination between institutions. This effort has led recently to the creation of the Financial Market Commission, which will be headed by an autonomous board of directors and will transform the financial supervision and regulation scheme to an integrated one, with a systemic view of the stability and risks facing the financial sector and more flexibility to deal with critical situations. The Central Bank of Chile enjoys a special independent status under the Bank‘s Constitutional Organic Law. Besides specific regulatory tasks with regard to the banking sector, the Central Bank oversees the foreign exchange regulations and monitors closely and 4  constantly all the industries making up the financial sector.

Ravi Menon: Decentralised finance and the future of money Panel remarks by Mr Ravi Menon, Managing Director of the Monetary Authority of Singapore, at the Andrew Crockett Memorial Lecture by Mark Carney, via Video Conference, 28 June 2021. * * * Thank you for the opportunity to engage on Mark Carney’s deeply thoughtful lecture. Mark has given us a powerful rendition of the transformation taking place that will “re-wire” our monetary and financial systems. Centrifugal forces are driving financial functions away from the traditional core. These forces are not just affecting money, but all aspects of the monetary system. Mark also reminds us that, amid this transformation, money has to be anchored on “values of trust, resilience, dynamism, solidarity and sustainability”. I cannot agree more. I’d like to focus on: the decentralisation of finance across the three ‘I’s of the monetary stack — intermediaries, infrastructure, and instruments; and how central banks and regulators can potentially shape this decentralisation in a way that upholds the critical values of money that Mark has highlighted. Let me begin with Intermediaries, at the top of the monetary stack. The delivery of retail financial services is being decentralised. This is happening in two ways. First, finance by non-financial players. There is now a much broader range of non-traditional – and often unregulated intermediaries in the retail finance space. This is not just BigTechs, but also FinTechs and smaller technology firms. These players provide payments, lending, savings and investments as complements to their core digital service.