regulatory treatment ( this is the number one principle or regulation ). therefore, any difference in regulation and supervision should be based on the risks posed by different products and services. second, there should not be unnecessary barriers to competition in the market beyond those justified by risk considerations. in relation to this, authorities should further assess the implications of prudential regulation, which often leaves banks in a situation of competitive disadvantage vis - a - vis other players, and work towards eliminating existing loopholes in regulatory frameworks. 3. given the global dimension of most technological innovations and the increased interconnectedness of the financial system, regulatory frameworks need to be internationally co - ordinated and upgraded. the work of the financial stability board ( fsb ) and other international standard - setting bodies ( ssbs ) will be crucial in this endeavour. however, as pointed out by the fsb, regulatory and supervisory approaches to fintech are becoming increasingly fragmented, undermining the effectiveness of financial institutions'efforts to address the ensuing risks. we, first of all, need to determine the legitimate uses and purposes of fintech innovations and then define guiding principles at global level that serve to avoid fragmentation across countries ’ regulatory approaches. in other words, we do not want to overregulate. we must first see whether there is a fundamental economic case for regulating specific products / functions ( which, in some cases, might ultimately be proven useless ) and then regulate in a coordinated manner. epilogue in closing, we are at the beginning of the “ fourth industrial revolution ”, which is transforming the way we live, work and interact. as the fintech sector grows, it is important that all parties involved not only pay close attention to technical, regulatory, policy, and legal considerations, but also monitor its growth and better understand its impact. regulatory trends become increasingly complex and regulators demand ever larger amounts of granular data from firms, as a result, there is substantial scope for big data analytics and machine learning to help both market participants follow regulatory and compliance requirements and supervisory authorities assess compliance and measure risk. one thing is for sure : no matter what, human intervention to provide a final arbitration will always be required! one final comment, with my professorial hat : more generally and in more philosophical terms, as new technologies evolve and become more accessible, naturally more ethical issues will arise, but i believe the foundation on which everything must be built is quite simple : putting humans and their needs first. plato the famous ancient greek philosopher who

alone. we should not become mired in past know - how and concepts which take no consideration of the changing circumstances of the era. and it is for these reasons that i would point out the need that our activities be always informed by the twin principles of “ relevance to reality ”, meaning that our operations should be intimately linked to the realities on the ground, and of “ globalization ”. in the course of the last 60 years, which have seen korea grow from a poverty - stricken nation to a g20 member country, the bank of korea has contributed greatly to economic development as the “ central bank of the republic of korea ”. i believe that we are now called upon to develop into a “ world class bank of korea ” while carrying on this tradition. over the last one year, we have taken a huge step toward a new advance, through the structural reform of our organization and improvements in our modes of operation. going ahead, in conjunction with these efforts, we look forward to accomplishing our vision of a “ global bok ” by striving even more to change our perceptions and build our capacities, driven by the impetus for change coming from within. bis central bankers ’ speeches dear friends and colleagues, there are many tasks to be pursued if we are to realize our vision through actual deeds, rather than seeing it stay as a mere catchword. i would say that the following challenges await those departments with responsibilities related to actual policy. first of all, a new monetary policy paradigm appropriate to global financial and economic conditions previously mentioned and to the changing role of the central banks must be sought out. the conduct of policies based on their relevance to the korean economy, while at the same time accurately charting the ebbs and flows of the world economy, is called for. we will also need to assiduously study methods of monetary policy operation that can bring about financial stability as well as firmly anchoring price stability. we will need to strive actively to form a concrete foundation for strengthening the bank ’ s role in financial stability. we must harness all our wisdom to devise various arrangements that can uphold the framework of international cooperation – in regard for example to the scope of the central bank ’ s financial stability mandate, to the associated policy instruments, and to the framework for conduct of the policies concerned. in view of the fact that in this global era financial stability cannot be achieved by the efforts of any single country alone, it is vital to build up international financial cooperation and global networks. for this very