on the most recent occasion the amount borrowed was sek 95 billion. by setting interest rates on riksbank certificates and fine - tuning – and as we will come to shortly – setting interest rates on the riksbank's loans to the banks, the riksbank has been able to steer the short - term rate throughout the crisis. to summarise, monetary policy has been aimed at keeping inflation close to the target and at the same time dampening the fall in economic activity during the financial crisis. the repo rate has been quickly cut to an extremely low level. the steering of the short - term rates has functioned well throughout the crisis. the normal aim of only steering the shortest interest rate has been supplemented with lending to the banks at longer maturities to be able to also influence interest rates further out on the curve. this means that monetary policy approaches questions regarding financial stability, which i will now discuss. financial stability financial stability is the riksbank ’ s other main task. put simply, it is a question of ensuring that the financial system is stable and that the payment system functions. the banks play a central role in financial stability as the majority of payments go through the bank system. the swedish banks fund half of their borrowing through deposits from the general public and half of it through loans from one another and on the financial markets. if problems arise that prevent the banks from obtaining funding by borrowing from one another or on the financial markets, they can borrow from the riksbank. the riksbank is what is usually known as the lender of last resort. figure 6 ted spread difference between 3 - month interbank rates and government security rates basis points sweden euro area usa jan - 07 apr - 07 jul - 07 oct - 07 jan - 08 apr - 08 jul - 08 oct - 08 jan - 09 apr - 09 jul - 09 oct - 09 sources : reuters ecowin och riksbanken. during the financial crisis several financial markets ceased functioning. the banks ’ confidence in one another declined and they became unwilling to lend to one another. developments during the crisis can be illustrated by, for instance, the so - called ted spread, the difference between the interest on three - month interbank loans and three - month treasury bills. as confidence between the banks declined, the ted spread increased during the crisis and peaked when lehman brothers fell ( figure 6 ). this meant that it became expensive and difficult for the banks to fund themselves. in this situation the riksbank

denis beau : the future of money - regulatory and policy issues related to the introduction of cbdcs opening remarks by mr denis beau, first deputy governor of the bank of france, at the european law institute webinar, 3 june 2024. * * * ladies and gentlemen, good evening, first of all, i thank the european law institute for inviting me to this panel discussion on the future of money. i am very pleased to share with you a few thoughts on the challenges which have emerged in the field of money and the associated payments systems, as i see them from my central bank and supervisor standpoint, and on the policies we develop given our monetary and financial stability mandates, to help address them. on those topics, within the 5 minutes i have, i would like to make 4 quick points : the first one is on the changes which are taking place in our payment system and the wider financial system, driven by the advancing digitalisation of financial services. at this stage, a lot of attention is focused on the use of distributed ledger technologies ( dlt ), in relation to the speculative crypto market and decentralised finance ( defi ). however, behind the hype, there is a more discrete and more transformative trend underway : the tokenisation of finance. however tokenisation is not a single innovation per se but rather a new ecosystem that is building up, which has spawned new activities and services, which first appeared in the payments sector before spreading to the wider financial sphere. the development of this ecosystem is still in an early stage. nevertheless, it could lead to far - reaching changes in the way our financial system operates, by fostering the emergence of new players, that bridge the gap between it and finance, new investment and settlement assets in tokenized form, and new type of financial infrastructures, decentralized, based on dlt, particularly blockchains. my second point is about the opportunities and risks created by those transformations, for market participants and the payment system as a whole. here i would like to stress first that this impact is likely to be two sided. to illustrate this for the functioning of the payment system, it is important to recognize that the positive impact those transformations may have in terms of improved transparency, better cost effectiveness and ( 24 / 7 ) availability could come at the price of more fragmented processes. this is particularly relevant if blockchains are non interoperable and unable to interact smoothly with existing central clearing, settlement and payment