than 200 % in others ; in the degree of local market concentration ; etc. there are many more examples, some of them influenced by long - term developments, some by entrenched behavioural differences and habits. bis central bankers ’ speeches to apply – or even try to apply – a federal or pan - european approach to such a diversified financial system requires, in my eyes, a key precondition : to have a functioning european federation in the first place. if that is not possible then we should not try to create half - baked pan - european solutions here in the area of banking – an area which is arguably more sensitive in many aspects than that of fiscal policy and fiscal transfers. if we are not careful enough, we risk repeating the difficulties of the single currency project. the euro is a currency without a state. this means nobody knows who should pay what to whom in bad times. it is for good times only. and we now all know very well that this is the biggest shortcoming of the whole project. some believe that cross - border integration is good per se, without any conditions. i tend to believe – not least because of the current crisis – that cross - border integration of national financial systems is welcome only if each of the national systems alone is and can be sufficiently sound and stable. that ’ s why we at the czech national bank are so nervous about this tendency to continue separating the powers of supervisory and regulatory authorities from their responsibilities in the area of financial regulation. these powers are gradually shifting in small steps towards those who have no direct responsibility and no pots of money to pay should things go wrong in the future. and such a system is not sustainable for future bad times. i believe this is a concern shared by policy - makers not only in our country, but also in other eu countries ( such as here in poland ) and i hope that the coalition of like - minded states has the potential to grow over time. so let me repeat : until we have a full - fledged eu federation we should not build a half - baked one in the area of eu banking. and i strongly advise paying attention to the rules being prepared by the european commission ( for instance the crisis and resolution mechanisms ), which have the potential to be out of line with this proposed approach. bis central bankers ’ speeches

competition is necessary to create incentives for fintechs to invest in innovations as well as pushing traditional entities to stay on their toes. at the same time, collaboration is essential for innovations to be absorbed into the financial systems. traditional players with their robust balance sheets, capital base and risk management practices can provide the strength and stability while fintechs with their agility and innovative capabilities can deliver on customer experience, drive down costs and expand access. what should be the areas of collaboration and what should be the fields of competition will eventually be determined by market forces. but this is also an area that regulators need to focus on creating a regulatory framework that continues to spur innovation. regulatory perspective of fintech innovation the reserve bank of india is deeply engaged in this process of technological transformation of the financial system. it's role has largely been to create an enabling environment for innovation to thrive by creating mechanisms such as regulatory sandbox, hackathons, creation of fintech department within the rbi and setting up of our own reserve bank innovation hub ( rbih ). recently, we announced the development of a public tech platform for frictionless credit. the platform is being developed by reserve bank innovation hub ( rbih ), to enable delivery of frictionless credit by facilitating seamless flow of required digital information to lenders from multiple sources of information. the platform will serve as a public good and exemplifies rbi's approach to fostering innovation. this is the developmental role that rbi plays. 2 / 4 bis - central bankers'speeches at the same time, rbi also plays the role of regulating the evolving financial system to maintain financial stability. rapid technology changes can outpace regulatory frameworks, and raise issues about market integrity, consumer protection, data privacy, and fair market practices. the agility of new age fintech firms can challenge traditional regulatory models, making it difficult to ensure compliance at all times and maintain stability. the reliance on digital platforms also amplifies vulnerabilities to cyber threats and data breaches. as fintechs amass sensitive financial data, ensuring robust cybersecurity measures and maintaining data privacy becomes paramount to safeguarding consumer information and financial systems. the rush to roll out new products and services could potentially undermine market integrity and compromise customer protection. therefore, while fintech innovation holds immense promise, a balanced evolution, where innovation is responsible and inclusive, is essential for the sustained positive impact of fintechs on financial services. the regulations for p2p in 2017,