A critical aspect of CCAR was the development of independent detailed models for the key bank business lines to act as an independent check on the risk  2  BIS central bankers’ speeches  assessments by the banks. Of course, this effort also drew on work at the Board of Governors and the rest of the Federal Reserve System. As well, our economists have played a role in developing international and domestic regulatory policy with respect to bank capital and liquidity standards. For instance, measurement of capital losses over time, and various run-off rates of different types of liabilities by our economists informed this work. Also, our economists’ work on broker-dealer liquidity informed the design of the liquidity coverage ratio. Finally, our economists pay special attention to the emerging area of financial stability monitoring. This takes place in a number of realms, including participation in the work of the Basel Committees, such as the Committee on Global Financial Stability (CGFS) of the BIS, that I currently chair, and the Committee on Payments and Settlement Systems (CPSS), which I once chaired, the numerous workgroups and committees of the Financial Stability Board, and ongoing contributions to the Financial Stability Oversight Council (FSOC). With respect to the FSOC, for example, New York and Chicago Fed economists have played a key role in editing the FSOC annual reports. A few other examples of our economists’ involvement in prudential and regulator policy include:   GSE reform and housing market policy.

* USD: M2 aggregate ** Gold: Market price of above-ground stocks of gold *** Realised 30-day volatility in %  Cryptocurrencies: low market capitalisation, high volatility  Financial market infrastructure: bedrock of financial system Trading platform  Trading platform  Securities settlement (SECOM)  Trade  Securities settlement  Settlement  RTGS payment system (SIC) 2  5 April 2018  RTGS Money Market Event | Andréa M. Maechler | © Swiss National Bank  Source: SNB  (Swiss Exchange)  Financial market infrastructure: linking market participants Trading platform  Broker Trade Bank Securities settlement  RTGS  Central bank 3  5 April 2018  Money Market Event | Andréa M. Maechler  Settlement service provider Custodian Source: SNB  Settlement  Today: complex centralised and bilateral reconciliation Trading platform  Seller  Buyer Trade Bank Securities settlement  RTGS  Central bank 4  5 April 2018  Money Market Event | Andréa M. Maechler  Settlement service provider Custodian Source: SNB  Settlement  DLT: decentralised and automated synchronisation Trading platform  Broker  Buyer  Seller  Trade Bank Securities settlement  RTGS  Central bank 5  5 April 2018  Money Market Event | Andréa M. Maechler  Settlement service provider Custodian Source: SNB  Settlement  Coexistence: message exchange via interface Trading platform  Buyer  Broker  Seller  Trade Bank Securities settlement  RTGS  Central bank 6  5 April 2018  Money Market Event | Andréa M. Maechler  Settlement service provider Custodian Source: SNB  Settlement  Coexistence: settling payment leg using private token Trading platform  Broker  Seller  Cash  Trade Securities  Buyer  Bank  Securities settlement  RTGS  Central bank 7  5 April 2018  Money Market Event | Andréa M. Maechler  Custodian Source: SNB  Token  Settlement service provider  Coexistence: tokenisation of central bank money Trading platform  Broker  Seller  Cash  Trade Securities  Buyer  Bank  Securities settlement  RTGS  Central bank 8  5 April 2018  Money Market Event | Andréa M. Maechler  Custodian Source: SNB  Token  Settlement service provider  Fintech: more than just DLT SWISS FINTECH INDUSTRY (220 COMPANIES)  Payments 12%  12%  Investment management 15% 24%  9  5 April 2018  Deposits & lending  Money Market Event | Andréa M. Maechler | © Swiss National Bank  Analytics Banking infrastructure  Source: IFZ Fintech Study 2018  22%  15%  DLT  Two tiers: allowing flexible market solutions for end customers  Central bank 10  5 April 2018  Money Market Event | Andréa M. Maechler  Source: SNB  RTGS  Thank you for your attention.