Recently, new business models and arrangements have also emerged to address the prevailing 1/3  BIS central bankers' speeches  gaps in the cross-border payments space. These among others include the introduction of SWIFT’s Global Payment Initiative (SWIFTgpi), a pioneering attempt at linking payment infrastructure through the experimental usage of distributed ledger technology. These have the potential to improve efficiency, allowing faster, secure and transparent cross-border payments. At the ASEAN level, efforts have been made to foster greater regional integration through linkages of the real-time retail payment infrastructures (RT-RPS). The ASEAN Payments Policy Framework was established as a set of principles to facilitate the linkages of RT-RPS. Bilateral arrangements have also been established by several ASEAN countries, including Malaysia, to enhance the efficiency of cross-border payments. For instance, linking between Singapore’s PayNow and Thailand’s PromptPay to facilitate more seamless cross-border payment transactions in real-time, and similarly to extend the linkage to Malaysia’s DuitNow. Once operationalised, this could enable cross-border payments between participating financial institutions to be virtually as seamless as domestic transactions. At the national level, Bank Negara Malaysia (BNM) is directing its regulatory and supervisory resources towards safeguarding the safety and soundness of payment and remittance systems. We are stepping up efforts to reinforce public confidence and acceptance of e-payment and eremittance services, particularly among underserved segments. We are also working to futureproof the country’s payment infrastructure to meet evolving market needs, including migrating to the ISO 20022.

That’s why the FPC has acted to limit the share of high loan-to-income mortgages UK banks can originate, the PRA has tightened standards on consumer credit and the Bank is monitoring closely the growth in leveraged lending. 13  All speeches are available online at www.bankofengland.co.uk/speeches  13  The second reason for caution is the possibility of a more material slowdown in China. China is the one major economy in which all major financial imbalances have materially worsened. It may be the exception that proves the rule that financial imbalances cause recessions. While China’s economic miracle over the past three decades has been extraordinary, its post-crisis performance has relied increasingly on one of the largest and longest running credit booms ever, with an associated explosion of shadow banking. Total Social Financing has increased from 120% to 223% of GDP since 2008. In parallel, the non-bank financial sector has increased from around 20% of GDP to over 70% today, with developments echoing those in the pre-crisis US including off-balance sheet vehicles with large maturity mismatches, sharp increases in repo financing, and large contingent liabilities of both borrowers and banks. Chinese authorities have begun taking measures to manage these risks. Growth in Total Social Financing is now in line with that of nominal GDP (Chart 10). The shadow banking sector is being restructured. But there is a tension between reducing the risks from high debt and supporting the economy.