have inflation come back down, albeit slowly, and on the other hand, the desire to avoid as far as possible an unnecessary weakening in demand. looking beyond the near term, what needs to be done to make future growth less likely to be disrupted by the sorts of financial problems we have seen emerge over the past 15 months? every episode of crisis provides some new lessons and these can be incorporated into regulatory and supervisory practice as appropriate. various proposed reforms in the area of financial regulation are on the table, many of them developed under the auspices of the financial stability forum. 1 these include likely adjustments to the basel ii arrangements for established in 1999, the financial stability forum brings together senior representatives from international financial institutions, international groupings of regulators and supervisors, committees of central bank experts and national authorities responsible for financial stability to promote international financial stability through enhanced information exchange and co - operation in financial supervision and surveillance. the capital requirements of banks, including efforts to make them more anti - cyclical ; more focus on liquidity risk management ; attention to the conduct of credit rating agencies ; the increased use of central counterparties to control the risks in some derivatives markets ; and the establishment of cross - border supervisory “ colleges ” for the largest internationally active banks. much work remains to be done, and if past experience on finding international agreement on regulation is any guide, it will be hard, slow, grinding work. but the call of global leaders last weekend in washington for this work to be expedited gives it an important additional impetus and a greatly strengthened focus. but we need to approach the task of reform with realism. the cycle of greed and fear cannot be regulated away. to assume that unrealistic optimism will not again, at some point, overwhelm the more sober instincts of investors, bankers, commentators and others would be a triumph of hope over experience. regulation can be improved, but there will always be an unregulated part of the system, the more so the tighter regulations are ; there will always be those who put at risk some of their capital in that sector ; there will always be a business cycle, and there will always be some who take excessive risk near the peak of the cycle and get caught out. the genius of the market economic system is that so much of the risk that is prudently taken, much of the time, turns out to reward the risk - taker, and indeed all of us, with the profitable deployment of capital, jobs, more choice, higher

are paying and have an opportunity to confirm that they wish to make the payment. this is an extra step that will assist payers to make sure they are paying who they think they are. there are also verification processes in place for registering payids ( the system that allows customers to assign an alias to their bank account ) to ensure people are who they say they are. indeed payid registration can only take place from within a customer ’ s internet banking portal or app. the npp also has a fraud liability framework in place that is consistent with existing consumer protection frameworks, and allocates liability where fraud is the result of inadequate verification practices. but like all payment systems, customers need to be alert to the potential for fraudsters to trick them out of details that would allow a fraud to occur – like their passwords. 2 educating consumers on these risks remains an imperative for the regulators and for the financial institutions. conclusion the npp is an important piece of payments system infrastructure that will pave the way for further innovation in the payments system. it has taken many years of hard work from the industry, undertaken in a great spirit of cooperation. but we now have a world - class fast payments system that i encourage the industry to embrace and create valuable services for their customers. 1 fis ( 2017 ), ‘ flavours of fast ’, final report, june. 2 i am using the term ‘ fraud ’ broadly here, to include not only situations where there is a theft or misuse of account information, or the compromise or hacking of customer authentication details, but also to cover ‘ scams ’, where the victim is tricked or persuaded into making a transfer to the fraudster ’ s account. these might occur via forged invoices, from bogus emails from foreign jurisdictions offering a share of a large sum of money, various social media scams. the accc ’ s scamwatch ’, available at < www. scamwatch. gov. au / >, website provides a range of information and warnings for consumers. 6 / 6 bis central bankers'speeches